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Indian resident can acquire shares in a foreign company

Sowmya.S.Balan (Paid Assistant) (749 Points)

05 December 2013

Dears

Is it possible for an indian resident to acquire shares of a foreign company under FEMA . please help me

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Ashok (Industry) (416 Points)
Replied 05 December 2013

General permission has been granted to persons (individual) resident in India for purchase / acquisition of securities as under:

Out of funds held in the RFC account;
As bonus shares on existing holding of foreign currency shares;
When not permanently resident in India, from the foreign currency resources outside India.

General permission is also available to sell the shares so purchased or acquired. A resident Indian can remit up to USD75,000/- per financial year under the Liberalised Remittance Scheme (LRS), for permitted current and capital account transactions including purchase of securities. The resident individual is allowed to set up/acquire JV/WOS overseas within the LRS limit with effect from August 5, 2013 in terms of FEMA Notification No. 263 subject to the terms and conditions specified therein.