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Reserve Bank
of India
Exchange Control Departemnt
Central Office
Mumbai-400 001
Notification No.FEMA.88/2003-RB
April 1, 2003
Foreign Exchange
Management (Transfer or Issue of any
Foreign Security) (Second Amendment) Regulations, 2003
In exercise
of the powers conferred by clause (a) of sub-section (3) of Section 6 and Section
47 of the Foreign Exchange Management Act, 1999 (42 of 1999), and in partial
modification of its Notification No.FEMA 19/RB-2000 dated May 3, 2000, the Reserve
Bank of India makes the following Regulations to amend the Foreign Exchange
Management (Transfer or Issue of any Foreign Security) Regulations, 2000, as
amended from time to time namely :-
Short title
and Commencement
1.(a) These
Regulations may be called the Foreign Exchange Management (Transfer or Issue
of any Foreign Security) (Second Amendment) Regulations, 2003.
(b) They
shall come into force from the date of their publication in the Official Gazette.
Amendment
of the Regulations
2. In the
Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations,
2000,
a) after
Regulation 6, the following shall be inserted, namely :
'6A. Permission
for Direct Investment in Equity of Companies
Registered
Overseas
A person
resident in India, being an individual or a listed Indian company or a mutual
fund registered in India, may invest in the shares of an overseas company which
is listed on a recognised stock exchange and has a share holding in its name
of not less than 10% in any listed Indian company as on 1st January
of the year of investment:
provided
that -
(i) in
the case of investment by the listed Indian company, the investment shall
not exceed 25% of its net worth shown in its latest audited balance sheet;
(ii) in
the case of investment by Mutual Fund, the investment shall not exceed the
ceiling stipulated by Securities & Exchange Board of India (SEBI) from time
to time;
(iii)
every transaction relating to purchase and sale of shares of the overseas
company shall be routed through the designated branch of an authorised dealer
in India.'
G.S.R.399(E)
K. J. Udeshi
Executive Director
Published in the Official Gazette of Government
of India - Extraordinary - Part-II, Section 3,
Sub-Section (i) dated 14.05.2003 - G.S.R.No.399(E)
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