Chapter V - INVESTMENT BY AN INDIVIDUAL PERSON RESIDENT OUTSIDE INDIA INCLUDING A NONRESIDENT INDIAN OR AN OVERSEAS CITIZEN OF INDIA (From Rule 12 to Rule 13)
Foreign exchange transfer rules for equity instruments and units govern cross-border sales, gifts, escrow, pledges, and exit conditions. Transfer of equity instruments and units of an Indian company by or to a person resident outside India is permitted only in accordance with the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 and applicable schedule conditions, pricing guidelines, documentation requirements, reporting obligations and sectoral limits. Transfers may occur between persons resident outside India, between a person resident outside India and a person resident in India, and from a person resident in India to a person resident outside India, subject to the mode of transfer and the relevant regulatory restrictions. The rule also regulates deferred consideration, escrow arrangements, optionality-clause exits and pledge of equity instruments or units.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Foreign exchange transfer rules for equity instruments and units govern cross-border sales, gifts, escrow, pledges, and exit conditions.
Transfer of equity instruments and units of an Indian company by or to a person resident outside India is permitted only in accordance with the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 and applicable schedule conditions, pricing guidelines, documentation requirements, reporting obligations and sectoral limits. Transfers may occur between persons resident outside India, between a person resident outside India and a person resident in India, and from a person resident in India to a person resident outside India, subject to the mode of transfer and the relevant regulatory restrictions. The rule also regulates deferred consideration, escrow arrangements, optionality-clause exits and pledge of equity instruments or units.
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