RBI/2007-2008/215 A.
P. (DIR Series) Circular No. 22
December 19, 2007
To All
Category - I Authorised Dealer banks Madam / Sir,
Foreign Direct
Investment by citizen / entity incorporated in Bangladesh
Attention of Authorised
Dealer (AD Category - I) banks is invited to the Foreign Exchange Management (Transfer
or Issue of Security by a Person Resident outside India) Regulations, 2000 notified
vide Notification No. FEMA 20 / 2000 -RB dated May 3, 2000 and as amended from
time to time. 2. In terms of sub-regulation (1) of Regulation 5 of the
Notification ibid, a person resident outside India (other than a citizen of Bangladesh
or Pakistan) or an entity incorporated outside India (other than an entity in
Bangladesh or Pakistan), may purchase shares or convertible debentures of an Indian
company under Foreign Direct Investment Scheme, subject to the terms and conditions
specified in Schedule I to the Notification No. FEMA 20. The Reserve Bank has
since amended the Regulations and notified vide FEMA Notification
No. 167 dated October 23, 2007 (copy enclosed). 3. Accordingly, a person
who is a citizen of Bangladesh or an entity incorporated in Bangladesh may, with
the prior approval of the Foreign Investment Promotion Board of the Government
of India, purchase shares and convertible debentures of an Indian company under
Foreign Direct Investment Scheme, subject to the terms and conditions specified
in Schedule 1 to Notification No. FEMA 20 / 2000 -RB dated May 3, 2000 as amended
from time to time.
4. AD Category - I banks may bring the contents of
the circular to the notice of their customers and constituents concerned.
5.
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, (Salim Gangadharan) Chief General Manager
Reserve
Bank of India Foreign Exchange Department Central Office Mumbai- 400
001 Notification No. FEMA. 167/2007-RB
Dated
October 23, 2007 Foreign Exchange Management (Transfer or Issue of Security
by A Person Resident Outside India) (Second Amendment) Regulations, 2007 In
exercise of the powers conferred by clause (b) of sub-section (3) of Section 6
and Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the
Reserve Bank of India hereby makes the following amendments in the Foreign Exchange
Management (Transfer or Issue of Security by A Person Resident Outside India)
Regulations, 2000 (Notification No. FEMA 20/2000-RB dated 3rd May 2000) namely:- 1.
Short Title & Commencement:- (i) These Regulations may be called the Foreign
Exchange Management (Transfer or Issue of Security by A Person Resident Outside
India) (Second Amendment) Regulations, 2007. (ii) This would come into effect
from the date of its publication in the official gazette. 2. Amendment
to the Regulations:-
1. In the Foreign Exchange Management (Transfer or
Issue of Security by A Person Resident Outside India) Regulations 2000, (Notification
No. FEMA 20/2000-RB dated 3rd May, 2000), in Regulation 5, sub-regulation (1),
shall be re-numbered as clause (i) of sub-regulation (1) thereof and after clause
(i) so re-numbered, the following clause shall be inserted, namely :- (ii)
Notwithstanding anything contained in sub-regulation (i) above, a person who is
a citizen of Bangladesh or an entity incorporated in Bangladesh may, with the
prior approval of the Foreign Investment Promotion Board of the Government of
India, purchase shares and convertible debentures of an Indian company under Foreign
Direct Investment Scheme, subject to the terms and conditions specified in Schedule
1." 2. In Schedule 1, para1 (1) shall be substituted by the following;
"A person resident outside India referred to in clauses (i) and (ii)
of sub-regulation (1) of Regulation 5, may purchase shares or convertible debentures
issued by an Indian company up to the extent and subject to the terms and conditions
set out in this Schedule."
(Salim Gangadharan) Chief
General Manager (i) Foot Note: The Principal Regulations were published
in the Official Gazette vide G.S.R.No. 406 (E) dated May 3, 2000 in Part II, Section
3, sub-section (i) and subsequently amended as under: G.S.R.No. 158(E) dated
02.03.2001 G.S.R.No. 175(E) dated 13.03.2001 G.S.R.No. 182(E) dated 14.03.2001 G.S.R.No.
4(E) dated 02.01.2002 G.S.R.No. 574(E) dated 19.08.2002 G.S.R.No. 223(E)
dated 18.03.2003 G.S.R.No. 225(E) dated 18.03.2003 G.S.R.No. 558(E) dated
22.07.2003 G.S.R.No. 835(E) dated 23.10.2003 G.S.R.No. 899(E) dated 22.11.2003 G.S.R.No.
12(E) dated 07.01.2004 G.S.R.No. 278(E) dated 23.04.2004 G.S.R.No. 454(E)
dated 16.07.2004 G.S.R.No. 625(E) dated 21.09.2004 G.S.R.No. 799(E) dated
08.12.2004 G.S.R.No. 201(E) dated 01.04.2005 G.S.R.No. 202(E) dated 01.04.2005 G.S.R.No.
504(E) dated 25.07.2005 G.S.R.No. 505(E) dated 25.07.2005 G.S.R.No. 513(E)
dated 29.07.2005 G.S.R.No. 738(E) dated 22.12.2005 G.S.R.No. 29(E) dated
19.01.2006 G.S.R.No. 413(E) dated 11.07.2006 G.S.R. No. 713(E) dated
November 14, 2007 |