Purchase and sale of foreign security permitted for residents using RFC accounts or permitted foreign currency resources.

Regulation 4 permits a person resident in India to purchase foreign securities using funds in a Resident Foreign Currency (RFC) account, to acquire bonus shares on such foreign securities under applicable law, and, if not permanently resident, to purchase foreign securities from foreign currency resources outside India; it also permits sale of foreign securities acquired under these provisions and defines the term not permanently resident for these purposes.

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