Principal regulations were published vide G.S.R. No. 795(E) dated October 17, 2019 and subsequently amended three times. In exercise of powers under Section 47 of the Foreign Exchange Management Act, 1999, the Reserve Bank of India has substituted the provisions at Sl. No. III and X of Regulation 3.1 and sub-regulation (9) of Regulation 4 of the principal regulations as follows.

Regulation 3.1, Sl. No. III (Schedule III – NRI/OCI investments on repatriation basis): Mode of payment shall be inward remittance from abroad through banking channels or out of funds in any repatriable deposit account under the Foreign Exchange Management (Deposit) Regulations, 2016. A repatriable rupee account shall be designated exclusively for investments under this Schedule. National Pension System subscriptions by NRIs/OCIs shall be paid through inward remittance or out of funds in any repatriable foreign currency, rupee account or NRO account. Sale proceeds (net of taxes) of equity instruments may be remitted outside India or credited to the designated rupee account. Sale proceeds of mutual fund units and National Pension System subscriptions may be remitted outside India or credited to any account under the Foreign Exchange Management (Deposit) Regulations, 2016 at the option of the NRI/OCI investor.

Regulation 3.1, Sl. No. X (Schedule XI – Purchase/Subscription of Equity Shares on International Exchanges by Permissible Holder): Consideration shall be paid through banking channels to a foreign currency account of the Indian company or as inward remittance from abroad through banking channels or out of funds in any repatriable foreign currency or rupee account under the Foreign Exchange Management (Deposit) Regulations, 2016. Sale proceeds (net of taxes) may be remitted outside India or credited to the bank account of the permissible holder under the Foreign Exchange Management (Deposit) Regulations, 2016.

Regulation 4(9): The existing provision is substituted to read: “LEC (Individual Foreign Investor – IFI): The designated Authorised Dealer Category I banks shall report to the Reserve Bank in Form LEC (IFI) the purchase/transfer of equity instruments by an individual person resident outside India including Non-Resident Indians or Overseas Citizens of India on stock exchanges in India.”