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    NDI

    Uploaded by

    Aishwarya Shankar
    Read the act

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    NDI

    Uploaded by

    Aishwarya Shankar
    2 views1 page
    Read the act

    Copyright

    © © All Rights Reserved

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    Read the act

    Copyright:

    © All Rights Reserved
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    2 views1 page

    NDI

    Uploaded by

    Aishwarya Shankar
    Read the act

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    CHAPTER III INVESTMENT BY PERSON RESIDENT OUTSIDE INDIA

    6. Investments by person resident outside India.—A person resident outside India may
    make investment as under:—
    (a) may subscribe, purchase or sell equity instruments of an Indian company in the manner
    and subject to the terms and conditions specified in Schedule I:
    [Provided that an entity of a country, which shares land border with India or the beneficial
    owner of an investment into India who is situated in or is a citizen of any such country, shall
    invest only with the Government approval: Provided further that, a citizen of Pakistan or an
    entity incorporated in Pakistan shall invest only under the Government route, in sectors or
    activities other than defence, space, atomic energy and such other sectors or activities
    prohibited for foreign investment: Provided also that in the event of the transfer of ownership
    of any existing or future FDI in an entity in India, directly or indirectly, resulting in the
    beneficial ownership falling within the restriction or purview of the above provisos, such
    subsequent change in beneficial ownership shall also require government approval:]
    [Provided also that a Multilateral Bank or Fund, of which India is a member, shall not be
    treated as an entity of a particular country nor shall any country be treated as the beneficial
    owner of the investments of such Bank or Fund in India.] Note: Issue or transfer of
    “participating interest or right” in oil fields by Indian companies to a person resident outside
    India would be treated as foreign investment and shall comply with the conditions laid down
    in Schedule I.
    (b) A person resident outside India, other than a citizen of Bangladesh or Pakistan or an
    entity incorporated in Bangladesh or Pakistan, may invest either by way of capital
    contribution or by way of acquisition or transfer of profit shares of an LLP, in the manner and
    subject to the terms and conditions specified in Schedule VI.
    (c) A person resident outside India, other than a citizen of Bangladesh or Pakistan or an
    entity incorporated in Bangladesh or Pakistan, may invest in units of an investment vehicle,
    in the manner and subject to the terms and conditions specified in Schedule VIII.
    (d) A person resident outside India may invest in the depository receipts (DRs) issued by
    foreign depositories against eligible securities in the manner and subject to the terms and
    conditions specified in Schedule IX.

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