TaxTMI 
TaxTMI 
Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) (Second Amendment) Regulations, 2014.
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....se shall be deemed to have come into force from the date of publication of this notification in the Official Gazette. 2. Amendment of the Regulations:- A. Amendment of Regulation 2 (i) in the existing clause (iii), at the end, the following shall be added: "Any foreign institutional investor who holds a valid certificate of registration from SEBI shall be deemed to be a registered foreign portfolio investor (RFPI) till the expiry of the block of three years". (ii) after clause (viii a), the following shall be added, namely: "(viiib). A Registered Foreign Portfolio Investor (RFPI) means a person registered in accordance with the provisions of Securities Exchange Board of India (SEBI) (Foreign Portfolio Investors) Regulations, 2014, as amended from time to time. Explanation: For the purpose of this regulation, the expressions, 'person', 'resident in India', 'non-resident' shall have the same meaning as assigned to them in Section 2(u), 2(v) and 2(w) of Foreign Exchange Management Act (FEMA), 1999, respectively. B. Amendment of Regulation 5: (i) in the existing sub-regulation (2), at the end, the following shall be added, namely: "A registered FII including SEBI approved sub....
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...., 2014" shall be inserted. C. Amendment of Regulation 14 (i) in sub-regulation 1, in clause (ii), the words and figures "Schedule 1,2,3,6 and 8" shall be substituted by the words and figures "Schedule 1,2,2A,3, 6 and 8". (ii) in sub-regulation (5), in clause (vi), the words "FIIs, NRIs or QFIs" shall be substituted by the words "FIIs, NRIs, QFIs or RFPIs " and the words and figures "Schedule 1, 2, 3, 6 and 8" shall be substituted by the words and figures "Schedule 1, 2, 2A, 3, 6 and 8". D. In Annex B and Annex E to Schedule 1, for the words "Foreign Institutional Investors" and "FIIs", wherever they appear, the words "Foreign Institutional Investors/registered Foreign Portfolio Investors" and "FIIs/RFPIs" shall be substituted respectively. E. after the existing Schedule 2, 'Schedule 2A' shall be added. F. Amendment of Schedule 5 (i) after paragraph 1B, the following shall be added, namely: "1C Permission to registered Foreign Portfolio Investors (RFPI) for purchase of securities (1) A registered Foreign Portfolio Investor (RFPI) may purchase, on repatriation basis, either directly from the issuer of such securities or through a registered stock broker on a recognized Stock....
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....nge traded derivative contracts as specified in sub-Regulation 6A of Regulation 5." (ii) in paragraph 3, after sub-paragraph (1), the following shall be added, namely: " (1A) A RFPI who purchases securities under the provisions of this Schedule shall make the payment for purchase of such securities either by inward remittance through normal banking channels or out of funds held in Foreign Currency Account or Special Non-resident Rupee Account maintained by the RFPI with a designated branch of an authorised dealer in terms of paragraph 2 of Schedule 2A." (ii) in paragraph 5, after sub-paragraph (i), the following shall be added, namely: "(ia) In the case of a RFPI who has sold securities in accordance with paragraph 4, the designated branch of an authorised dealer referred to in sub-paragraph (1A) of paragraph 3 may allow remittance of net sale/ maturity proceeds (after payment of taxes) or credit the net amount of sale/ maturity proceeds of such securities to the Foreign Currency Account or Special Non-resident Rupee Account of the RFPI maintained in accordance with the provisions of paragraph 2 of Schedule 2A." G. In Schedule 7, in paragraph 2, after the words "A SEBI registe....
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.... convertible debentures of an Indian Company by Registered Foreign Portfolio Investor (RFPI) under Foreign Portfolio Investment (FPI) Scheme 1. Purchase/sale of shares and/or convertible debentures A Registered Foreign Portfolio Investor (RFPI) registered in accordance with Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014, as amended from time to time, may purchase shares and convertible debentures of an Indian company under FPI Scheme. 2. Maintenance of account by a RFPI for routing transactions of purchase and sale of shares / convertible debentures (i) A RFPI may open a Foreign Currency Account and/or a Special Non-Resident Rupee Account with a designated branch of an Authorized Dealer for routing the receipt and payment for transaction relating to purchase and sale of shares/convertible debentures under this Scheme, subject to the following conditions: * The Account shall be funded by inward remittance through normal banking channels or by credit of sale proceeds (net of taxes) of the shares/convertible debentures sold on stock exchange. * The funds in the account shall be utilized for purchase of shares/ convertible debentures in a....