(i) Reserve Bank by its Notification No.F.E.R.A.195/99-RB dated 30th March 1999 has granted general permission under Sections 19(1)(d) and 19(1)(a) read with Section 9(1)(a) of the Foreign Exchange Regulation Act, 1973 to domestic Mutual Funds referred to in clause (23D) of Section 10 of the Income Tax Act, 1961:-

a) to issue units or any other similar instrument on non-repatriation basis under the schemes floated by them with the approval of the Securities and Exchange Board of India to NRIs/OCBs subject to the conditions mentioned under (ii) below;

b) to send such units/instruments out of India to the place of residence or location, as the case may be, of the NRI/OCB concerned; and

c) to make payment to non-resident investors, on repurchase of units or other instruments subject to the conditions mentioned in (iii) below.

(ii) The general permission to issue units referred to in (i)(a) above is subject to the following conditions:-

a) The Mutual Funds should comply with the terms and conditions stipulated by the Securities and Exchange Board of India.

b) The amount representing investment should be received by inward remittance through normal banking channels or by debit to the NRE/FCNR/NRO/NRSR account of the non-resident investor maintained with an authorised dealer in India.

(iii) The general permission to make payment of interest/dividend and maturity proceeds on repurchase of units referred to in (i)(c) above is subject to the following conditions:-

a) Where the investment is made by remittance from abroad through normal banking channels or by debit to NRE/FCNR/NRO account of the non-resident investor the interest/dividend and maturity proceeds may be credited to the NRO or NRSR account of the non-resident investor, as desired by him.

b) Where the investment is made by debit to NRSR account of the non-resident investor the dividend/interest and maturity proceeds may be credited to NRSR account only of the non-resident investor.

c) The net dividend/interest income as well as maturity proceeds on repurchase of units may be credited to NRO/NRSR account, as the case may be.