Eximkey - India Export Import Policy 2004 2013 Exim Policy

NRIs/OCBs are permitted to subscribe to new issues of equity shares/convertible debentures of existing or new companies (both private and public limited) engaged/ proposing to engage in any activity including finance, hire purchase, leasing, trading or other services etc. (except agricultural/plantation activities and real estate business) with repatriation benefits upto 24% of the new issue of the concerned Indian company. Reserve Bank vide its Notifcation No. F.E.R.A. 187/98-Rb dated 3rd October 1998 has granted general permission under Section 19(1)(a) , 19(1)(d) and 29(1)(b) of FERA 1973 to Indian companies for issue and export of equity shares/convertible debentures to NRI/OCB investors in respect of the eligible investment. Indian companies seeking investment from NRIs/OCBs under the Scheme and satisfying the conditions laid down in the said Notification may issue equity shares/convertible debentures to NRIs/OCBs without prior approval of Reserve Bank and file a declaration in Form ISD together with the required documents with the concerned Regional Office of Reserve Bank , under whose jurisdiction their Registered Office is situated , within 30 days from the date of issue of shares/convertible debentures. Accordingly NRIs/OCBs who have been issued shares/convertible debentures under the general permission granted by this notification would not need any specific approval under Section 29(1)(b) of FERA 1973 from Reserve Bank.

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