Acquisition of foreign securities: limits and approval framework for resident individuals clarified, with resale without prior approval allowed. The amendments allow a resident individual to acquire qualification shares in a foreign company for a director's post subject to minimum required holding, an upper limit of one percent of paid-up capital, and a yearly monetary ceiling; acquisitions beyond these limits require prior RBI approval. They also permit acquisition of rights shares by resident individuals by virtue of existing holdings, and provide that qualification shares and rights shares acquired under these provisions may be sold without prior approval.
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Provisions expressly mentioned in the judgment/order text.
Acquisition of foreign securities: limits and approval framework for resident individuals clarified, with resale without prior approval allowed.
The amendments allow a resident individual to acquire qualification shares in a foreign company for a director's post subject to minimum required holding, an upper limit of one percent of paid-up capital, and a yearly monetary ceiling; acquisitions beyond these limits require prior RBI approval. They also permit acquisition of rights shares by resident individuals by virtue of existing holdings, and provide that qualification shares and rights shares acquired under these provisions may be sold without prior approval.
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