TaxTMI 
TaxTMI 
Overseas Investment by Person Resident in India(PRII) [Section 6(4)]
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....ral permission, a person resident in India is allowed to - * hold; * own; * transfer; * invest in; * foreign currency [defined in section 2(m)] * foreign security [defined in section 2(o)] * immovable property * If such currency, security or property was * acquired, held or owned by such person when he was resident outside India or * inherited from a person who was resident outside India.. * Reserve Bank has clarified that the following transaction are covered under section 6(4) of FEMA Act,1999 [A.P. (DIR Series) Circular No. 90, dated 09-01-2014] * Foreign currency accounts opened and maintained by such a person when he was resident outside India; * Income earned through employment or business or vocation outsi....
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....ct to the terms and conditions under these rules. * The person resident in India acquiring the rights issue may renounce to in favour of a person resident in India (PRII) or a person resident outside India (PROI). [ Rule 7 ] * As per para 7 Rights issue and bonus shares * A person resident in India, who has acquired and continues to hold equity capital in a foreign entity in accordance with the OI Rules/Regulations may acquire equity capital through exercise of rights or by way of bonus shares in accordance with rule 7 of the OI Rules. * The acquisition of equity capital through exercise of such rights shall be reported in Form FC. Where such person does not exercise the rights but renounces such rights in favour of a person ....
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....corporated in Pakistan or in any other jurisdiction as may be advised by the Central Government from time to time shall require prior approval of the Central Government. * The applications for overseas investment/financial commitment in Pakistan/other jurisdiction as may be advised by the Central Government from time to time or in strategic sectors/specific geographies in accordance with rule 9 of OI Rules shall be forwarded by the AD banks from their constituents to the Reserve Bank as per the laid down procedure for onward submission to the Central Government. [ Para 4 ] * Exception:- Notwithstanding anything contained in these rules or Foreign Exchange Management (Overseas Investment) Regulations 2022 * Special approval by the Cen....
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....y of OI Rules/Regulations/Directions [ Para 2 ] * The provisions contained in the OI Rules/Regulations/Directions shall not apply, and general permission shall be available for acquisition or transfer of any investment outside India made as per rule 4 of the OI Rules. As per Rule 4, Nothing in these rules or the Foreign Exchange Management (Overseas Investment) Regulations, 2022 shall apply to- * (a) any investment made outside India by a financial institution in an IFSC; * (b) acquisition or transfer of any investment outside India made,- * (i) out of Resident Foreign Currency Account; or * (ii) out of foreign currency resources held outside India by a person who is employed in India for a specific duration irrespective of lengt....