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Investment Opportunity

  • FI in India -as per India policy
  • Guidelines of GOI
  • Provision of FEMA.sec 6
  • Provision of regulations
  • Under FEMA (FEMA 20)
  • Routes of investments
  • Automatic-RBI route
  • SCH i of FEMA 20
  • Gen permn in r/o Annx B activities
  • Subject to sectoral caps
  • Govt route (sia-fipb) approval
  • Activities in Annx B
  • Govt Securities
  • MMF insts/units
  • PSU bonds
  • Comml papers
  • Shares of pses disinvested by goi
  • Deposits in indian companies subject to approval by goi/nbfc guidelines
  • Invest not permitted in companies engaged in agri/plant/realestate
  • Equity capital - shares/debs
  • On repat and /or non-repat basis
  • Under portfolio invest scheme
  • New issues
  • Investing / acqisition of shares of existing companies
  • Allowed to invest in secondary mkt,upto 10% of the total sharesthro stock exchanges,both on repat/non-repat basis
  • Through designated branches of ads in form nri (non-repat),rpi(repat)
  • For ocb's -nrc and rpc
  • Can authorise residents as agents
  • Or stock brokers,but to route thro designated branches
  • Conditions
    • with or w/o repatriation
    • purchase thro stock exch and desig branch (only one bank)
    • upto 10% of p u c of the company
    • and 10% of puc of each seriesof issue for all nris/ocbs together
    • ruling mkt price
    • no short selling, and delivery to take place
  • Form nri/nrc
  • Onetime gen permission
  • Payment to be recd thro inward
  • Remittance or from investor's
  • NRE/FCNR/NRO/NRSR A/C
  • Form rpi/rpc
  • Onetime gen permission
  • Payment to be recd thro inward remittance or by debit to investor's nre/fcnr a/c
  • Investment by indvl nri/ocb in listed indian company not to exceed 5% of its total puc of each series of puc or convt debs issued by it
  • Cases not covered to be ref to rbi coc
  • Invest upto 24% allowed in R/O companies passing genbody resolution to the effect
      to approach ECD company with necessary resolution
  • NRI/PIO/OCB  allowed upto 100% of new issue of companies
  • Restriction in R/O ocb's
  • Lock-in period of three years and ceiling of 16% on repat of profits
  • Upto 100% permitted in new issues of sick units for revival
  • Appeal to RBI ecd co in form psu
  •   Note
    • citizens of pakistan,bangladesh (and srilanka in some cases) not eligible for any facilities given to nri/pio's
  • From non-res to non res
  • RBI 's gen perm available
  • However if transferor is nri/pio/ocb and transferee is non res (not nri/pio/ocb) approval from SIA/FIPB and RBI is neccessary
  • Transfer/sale from res to non-res
  • Requires goi approval and the rbi approvalu
  • RBI to ensure price - not less than mkt related/calculated in t/o cci guidelines
  • From non-res to res
  • Prior approval from RBI
  • Form ts 1
  • Gen perm if sold on stock exch
  • Schedule5 OF FEMA 20
  • Govt secs
  • PSUbonds
  • PSE shares disinvested by GOI
  • No ceiling
  • Govt secs, MMF's, TRSY bills, NSC etc.
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