The Foreign Exchange Management (Transfer or issue of Security by a Person Resident Outside India) Regulations, 2000 contains other matters like acquisition of right shares for which detailed provisions have been made in Regulation 6. Regulation 7 contains various matters regarding the issue and acquisition of shares after merger or de-merger or amalgamation of Indian companies. The Employees Stock Options Scheme is becoming popular now-a-days. Hence, Regulation 8 of these Regulations contains detailed rules regarding the issue of shares under the Employees’ Stock Options Scheme to persons resident outside India. As regards transfer of shares and convertible debentures of an Indian company by an NRI, detailed regulations are contained in Regulation No. 9. It has also been made clear that prior permission of the Reserve Bank is required in certain cases for transfer of securities by gift or sale, etc. as contained in Regulation No. 10. Regulation No. 11 of these Regulations makes it clear that no remittance of sale proceeds of an Indian security held by a person resident outside India would be made otherwise than in accordance with these Regulations and the conditions specified in the relevant Schedule. Hence, a reference to Schedules as discussed above becomes necessary for an NRI interested in the remittance of sale proceeds for which normally there is no problem in India. [For latest relaxations a reference to the Reserve Bank of India should be made}. |
