NTF. NO. FEMA 76/2002-RB, DT. 12/11/2002*

Acquisition of Right Shares-Existing NRI Shareholders Permitted to Hold Addl. Shares

Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Second Amendment) Regulations, 2003

G.S.R. 223(E)-In exercise of the powers conferred by clause (b) of Sub-section 6 and Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), and in partial modification of its Notification No. FEMA 20/2000-RB dated 3rd May, 2000, the Reserve Bank of India makes the following Regulations to amend the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000, namely:–

1. Short title and commencement:–

(i) These Regulations may be called the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Amendment) Regulations, 2003.

(In above Notification the figure "2003" at title & short title & "Amendment" has been substituted vide CORRIGENDUM - G.S.R. No.555(E), DT. 31/08/2004)

(ii) They shall come into force on their publication in the Official Gazette.

2. Amendment of the Regulation:–

(i) In Regulation 6, the following may be added as sub-Regulation (2) (ii):–

“The existing non-resident shareholders may apply for issue of additional shares, and the investee company may allot the same subject to the condition that the overall issue of shares to non-residents in the total paid-up capital does not exceed the sectoral cap”.

(ii) The existing Sub-Regulation 2 (ii) and 2 (iii) of Regulation 6, may be renumbered as Sub-Regulation 2 (iii) and 2(iv) respectively.

Sd/-
K. J. Udeshi,
Executive Director

Foot-Note :

The Principal Regulations were published in the official gazette vide G.S.R.No.406(E) dated May 8, 2000 in Part II, Section 3, Sub-section (i) and subsequently amended vide G.S.R.No.158(E) dated March 2, 2001, G.S.R.No.175(E) dated March 13, 2001, G.S.R.No.182(E) dated March 14, 2001, G.S.R.No.4(E) dated January 2, 2002 and G.S.R.no.574(E) dated August 19, 2002.

(Foot Note has been added vide CORRIGENDUM - G.S.R. No.555(E), DT. 31/08/2004)

(Please refer Cir. No. 10/2003-04-RB, Dt. 20/08/2003)

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