Derecognition of Overseas Corporate Bodies as an Investor Class

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....change Dear Sirs / Madam Derecognition of Overseas Corporate Bodies as an Investor Class It has been decided in consultation with the Government, to derecognise Overseas Corporate Bodies (OCBs) in India as an eligible 'class of investor' under various routes/schemes available under extant Foreign Exchange Management Regulations. 2. This decision is a follow up of the review of investme....

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....ly, it has been decided that with immediate effect - a.  An unincorporated entity and OCB shall not make fresh investment under FDI Scheme (including Automatic Route). However, the unincorporated entities and OCBs may continue to hold shares and convertible debentures till they are sold / redeemed. b. OCBs shall not undertake purchase of shares / convertible debentures on non-....

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....y. f.  A person resident in India shall not borrow in foreign currency from OCBs. g. An Indian company shall not borrow in rupees on repatriation and non-repatriation basis from OCBs by way of investment in Non-convertible Debentures (NCDs). h. An Indian company, a proprietorship concern or a firm in India shall not accept deposits from OCBs on non-repatriation basis. ....

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....l be opened and no renewal of deposits shall be made. 4. It may be noted that instructions given by the Reserve Bank not to allow operations in the accounts of specific OCBs without prior permission of the Bank, shall continue to be operative. 5. As regards investment on repatriation basis (including investment related income which is repatriable) ADs may allow repatriation as authorised. As....