Foreign Exchange Management (Deposit) (Amendment) Regulations, 2012 - 228/2012 - Foreign Exchange Management

Escrow accounts for share consideration allowed without prior approval, subject to specified FEMA and SEBI compliance and conditions.

Schedule 9 permits resident and non resident acquirers to open INR escrow accounts with AD Category I banks and escrow securities with SEBI depository participants without prior RBI approval, for payment of share purchase consideration. Accounts must be non interest bearing, cannot secure facilities, and accept only specified credits (foreign inward remittances for share issue/transfer or rupee consideration from resident acquirers) and debits (remittance to issuer/transferor or refund on non materialisation). Operations must comply with FEMA and applicable SEBI rules, KYC requirements, and the account is generally limited to six months unless RBI permits an extension.