Funds Raised Through Listing of Equity Shares of Indian Cos. On IE Can Be Kept in Foreign Currency a/c Opened Abroad
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- Last Updated on 25 April, 2024
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Notification No. FEMA 10R (3)/2024-RB; Dated: 19.04.2024
Earlier, the Govt. vide. Notification No. S.O. 332(E) dated 24.01.2024 notified the Foreign Exchange Management (Non-debt Instruments) (Amendment) Rules, 2024. A new Rule 34 in Chapter X has been inserted which permits investment by permissible holders in equity shares of public companies incorporated in India and listed on International Exchanges.
Now, the RBI has notified the FEM (Foreign Currency Accounts by a person resident in India) (Amendment) Regulations, 2024. An amendment has been made to Regulation 5(F)(1) of the existing regulations.
As per the amended norms, funds raised via the direct listing of equity shares of companies incorporated in India on International Exchanges, pending their utilisation or repatriation to India can be held in foreign currency accounts with a bank outside India.
Currently, Foreign Currency Accounts with a bank outside India could be opened to hold deposits raised through External Commercial Borrowings (ECB), American Depository Receipts (ADRs), or Global Depository Receipts (GDRs), pending their utilisation or repatriation to India.
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