The earlier regulations and procedure for investment by FITs under Portfolio Investment Scheme mostly remain unchanged, and they are duly incorporated in Schedule 2 to these Regulations. It has also been made clear in this Schedule that the Reserve Bank would also consider applications from a domestic asset management company or a portfolio manager registered with SEBI as Fl! for managing the sub-account to make investment under the Portfolio Investment Scheme on behalf of persons resident outside India who are foreign citizens and body corporate registered outside India1 as indicated in paragraph 4 of Schedule 2. Such investment would be restricted to 5 per cent of the equity capital or 5 per cent of the paid up value of each series of convertible debentures within the overall ceiling of 24 per cent or 40 per cent as applicable for Fils for the purpose of Portfolio Investment Scheme. From 1-1-2004 on registered FIT has to maintain an account regarding purchase and sale of shares/convertible debentures. |
