Applications for remittance of interest on bonds or debentures issued to non-residents, should be made by the Indian companies concerned to authorised dealers giving the following particulars -

(a) Name and address of the non-resident bond or debenture holder

(b) Nationality or place of incorporation

(c) Number and face value of the bond/debenture

(d) Number & date of Reserve Bank approval for issue of bond/debenture along with a certified copy

(e) Amount of gross interest

(f) Tax deducted at source

(g) Net remittable amount

On receipt of the application, authorised dealers may allow the remittance of the net amount of interest i.e. after payment of tax at applicable rate after verifying that the necessary permission of Reserve Bank for issue of the bond/debenture to the non-resident holder was obtained and that it does not prohibit the remittance of interest. Interest due to non-residents who are not eligible for having it remitted abroad can, however, be credited only to their Ordinary Non-resident Rupee (NRO) accounts. The Indian company/authorised dealers should ensure that the reference number, date etc. of Reserve Banks permission and the repatriable/non-repatriable nature of the bonds/debentures held by the concerned non-residents are incorporated on the counterfoil of interest warrants.

NOTE: While granting permission for purchase of bonds/debentures with repatriation rights on behalf of the Foreign Institutional Investors, Reserve Bank authorises the designated bank branches to credit interest to the special non-resident rupee account of the investor (see paragraph 10B.4). The Indian companies concerned may, therefore, send the interest warrants to designated bank branch concerned giving the necessary particulars as indicated above.