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RBI/2016-17/197
A.P. (DIR Series) Circular No.23
December
27, 2016
To
All Category – I Authorised
Dealer Banks
Madam/ Sir,
Purchase and sale of securities
other than shares or convertible debentures of an Indian company by a
person resident outside India
Attention of Authorized Dealer
Category-I (AD Category-I) banks is invited to Schedule 5 to the Foreign
Exchange Management (Transfer or Issue of Security by a Person Resident
outside India) Regulations, 2000 (the Principal Regulations) notified vide Notification
No. FEMA.20/2000-RB dated May 3, 2000, as amended from time to time, in
terms of which, eligible investors, viz., SEBI registered Foreign
Institutional Investors (FIIs), Qualified Foreign Investors (QFIs),
registered Foreign Portfolio Investors (FPIs) and long term investors
registered with SEBI, may purchase securities indicated in Schedule 5 on
repatriation basis and subject to such terms and conditions as may be
specified by the SEBI and the Reserve Bank from time to time.
2. With a view to providing
flexibility in regard to the manner in which non-convertible
debentures/bonds issued by Indian companies can be acquired by FPIs, it has
now been decided to allow them to transact in such instruments either
directly or in any manner as per the prevalent/approved market practice.
3. AD Category - I banks may
bring the contents of this circular to the notice of their constituents and
customers.
4. The directions contained in
this circular have been issued under sections 10(4) and 11(1) of the
Foreign Exchange Management Act, 1999 (42 of 1999) and are without
prejudice to permissions / approvals, if any, required under any other law.
Yours
faithfully,
(T.
Rabi Sankar)
Chief General Manager
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