Foreign Investment in Tier I and Tier II instruments issued by banks in India

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.... banks in India Attention of Authorized Dealer (AD) banks is invited to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 notified by the Reserve Bank of India vide Notification No.20 dated 3rd May 2000, as amended from time to time. Regulation 5 of the said Notification read with Schedule 2, 3 and 5 specifies the capital market i....

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.... of 49 per cent of each issue, and investment by individual FII should not exceed the limit of 10 per cent of each issue. b. The investments by all NRIs in Perpetual Debt instruments (Tier I) should not exceed an aggregate ceiling of 24 per cent of each issue and investments by a single NRI should not exceed 5 percent of the issue. c. The investment by FIIs in Debt capital instruments (Tier II....

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.... the NRIs in these instruments on the floor of the stock exchange shall be reported by the custodians and designated banks, respectively to the Reserve Bank of India through the soft copy of the LEC Returns, on a daily basis, as prescribed in Schedule 2 and 3 of the Notification under reference. 6. The banks issuing Perpetual Debt instruments and Debt capital instruments shall also comply with t....