Dear All,
The RBI has amended FEM (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 notified vide FEMA Notification No. 167 dated October 23, 2007 to give effect changes relating to investment by citizen/ Entity Incorporated in Bangladesh.
As per existing provisions of Regulation 5 of FEM (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 a citizen of Bangladesh or Pakistan or an entity incorporated in Bangladesh or Pakistan, are not allowed to purchase shares or convertible debentures of an Indian company under Foreign Direct Investment Scheme.
As per above said RBI notification and subsequent AP DIR Circular No. 22 dated 19th Dec 2007, a person who is a citizen of Bangladesh or an entity incorporated in Bangladesh may, with the prior approval of the Foreign Investment Promotion Board of the Government of India, purchase shares and convertible debentures of an Indian company under Foreign Direct Investment Scheme, subject to the terms and conditions specified in Schedule 1 to Notification No. FEMA 20 / 2000 -RB dated May 3, 2000 as amended from time to time.
Alagar
Karvy Investor Services Limited
Moble: 919884731993
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