Capital Account Transactions – Liberalisation - Clarification

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....tion on certain issues is indicated in Annexure I to this circular. 2. Authorised dealers are required to put in place an adequate reporting mechanism and obtain such declaration/undertaking from their constituents to enable them to maintain a database. However, in order to ensure availability of uniform database, designated branches of authorised dealers may maintain the details of transactions routed through them as under :- i. Name/address/Telephone/Fax No./e-mail ID/PAN No. ii. Amount remitted to broker iii. Date of remittance iv. Date of purchase of shares v. Name of the scrip purchased vi. Amount paid Price/Premium brokerage/Total vii. Date of sale of shares viii. Amount received Price/Premium/Total ix.....

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....tes to register themselves with overseas brokerage firms. 2. Availment of various facilities provided by overseas brokerage firms At present overseas investment is permitted in companies listed on a recognised stock exchange and which have a minimum shareholding of 10 per cent in an Indian company listed on a recognised stock exchange in India. Investment in money market funds or bank deposits is not permitted. Investment is allowed in equity instruments by way of cash remittances only. Investment with borrowed funds is not permitted. Similarly, the investors are not permitted to lend the securities acquired and lying with the brokers or with a depository for the purpose of earning any return thereon. 3. Investment in - a. Liste....