Mode of Payment for international listings clarifies permitted banking channels and reporting for purchases, subscriptions and sale proceeds. Schedule XI prescribes that consideration for purchase/subscription of equity shares of Indian companies listed on international exchanges must be paid through banking channels to the company's foreign currency account or as inward remittance, with proceeds remitted to India or deposited in the compliant foreign currency account; sale proceeds (net of taxes) may be remitted abroad or credited to the permissible holder's account. Reporting obligations require Authorised Dealer Category I banks to submit Form LEC(FII) for FPI purchases/transfers on Indian exchanges and for purchases/subscriptions on international exchanges classified as FPI, reported by the investee company via the bank.
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.
Mode of Payment for international listings clarifies permitted banking channels and reporting for purchases, subscriptions and sale proceeds.
Schedule XI prescribes that consideration for purchase/subscription of equity shares of Indian companies listed on international exchanges must be paid through banking channels to the company's foreign currency account or as inward remittance, with proceeds remitted to India or deposited in the compliant foreign currency account; sale proceeds (net of taxes) may be remitted abroad or credited to the permissible holder's account. Reporting obligations require Authorised Dealer Category I banks to submit Form LEC(FII) for FPI purchases/transfers on Indian exchanges and for purchases/subscriptions on international exchanges classified as FPI, reported by the investee company via the bank.
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