TaxTMI 
TaxTMI 
Purchase/sale of shares and/or convertible debentures of an Indian company by a registered Foreign Institutional Investor under Portfolio Investment Scheme - [See Regulation 5 (2)]
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....ent Scheme 1. Purchase/sale of ^13[shares or convertible debentures or warrants ] ^3[(1) A registered Foreign Institutional Investor (FII) may purchase the ^11[shares or convertible debentures or warrants ] of an Indian company under Portfolio Investment Scheme. (2) The purchase of ^14[shares or convertible debentures or warrants] under sub-paragraph (1) shall be made through registered broker on recognized stock exchange in India. (3) The amount of consideration for purchase of ^15[shares or convertible debentures or warrants] shall be paid out of inward remittance from abroad through normal banking channels or out of funds held in an account maintained with the designated branch of an authorised dealer in India, in accordance ....
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.... the price at which shares are issued to residents, and ^10[(ii) in case of issue by private placement, the price is not less than the price arrived in terms of SEBI guidelines or not less than the fair price worked out as per any internationally accepted pricing methodology for valuation of shares on arm's length basis, duly certified by a SEBI registered Merchant Banker or Chartered Accountant, as applicable.] ^7[(6) A registered FII may, undertake short selling as well as lending and borrowing of securities subject to such conditions as may be stipulated by the Reserve Bank of India and the SEBI from time to time.] ^4[2. Maintenance of account by a registered FII for routing transactions of purchase and sale of ^18[shares ....
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....or a Non-resident Rupee Account of the registered Foreign Institutional Investor concerned. 4. Investment by certain other investors ^5[(1) A domestic asset management company or portfolio manager, who is registered with SEBI as a foreign institutional investor for managing the fund of a sub-account may make investment under the Scheme on behalf of (i) a person resident outside India who is a citizen of a foreign state, or (ii) a body corporate registered outside India; Provided that such investment is made out of funds raised or collected or brought from outside through normal banking channel. ^6[(2) Investments permitted to be made under sub-paragraph (1) shall not exceed 5% (five per cent) of the total....
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....rtfolio Investment Scheme. The permission may be granted by Reserve Bank subject to such terms and conditions as may be considered necessary. (2) The registered FII permitted by the Reserve Bank under sub-paragraph 1, shall purchase the shares/convertible debentures of an Indian company through registered brokers on recognised stock exchanges in India". 4. Substituted vide Notification No. 108/2004 dated 01-01-2004, before it was read as, "The Reserve Bank may, on application, permit a registered Foreign Institutional Investor to open a Foreign Currency Account and/or a Non-resident Rupee Account with a designated branch of an authorised dealer for routing the receipt of and payment for transactions relating to pu....
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....umbered as sub-paragraph(2), before deletion it sub para 2 was read as "The application to Reserve Bank for permission under sub-paragraph (1) may be made through SEBI." 7. Inserted vide Notification No. 175/2008-RB dated 22-02-2008. 8. Substituted vide Notification No. FEMA. 242/2012-RB Dated 19-10-2012 w.e.f. 21-04-2010, before it was read as, "(ii) in case of issue by private placement, the price is not less than the price arrived in terms of SEBI guidelines or guidelines issued by erstwhile Controller of Capital Issues, as applicable." 9. Inserted vide Notification No. FEMA. 242/2012-RB Dated 19-10-2012 10. Substituted vide Notification No. FEMA.306/2014 -RB dated 23-05-2014, bef....