Please clarify if the shares was issued by a foreign company or by a branch office or agent of the company, in india. In the second case, the following regulations under FERA issued by RBI in the year 2000
Foreign Exchange Management ( Issue of security in India by a branch, office or agency
of a Person resident outside India) Regulations, 2000
Notification No. FEMA 2 /2000-RB dated 3rd May 2000
RESERVE BANK OF INDIA
(EXCHANGE CONTROL DEPARTMENT)
CENTRAL OFFICE
MUMBAI 400 001
In exercise of the powers conferred by clause (c) of sub-section (3) of Section 6 and subsection
(2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the
Reserve Bank makes the following regulations, namely:
1. Short title and commencement :-
i) These Regulations may be called the Foreign Exchange Management (Issue of
Security in India by a branch, office or agency of a person resident outside India)
Regulations, 2000.
ii) They shall come into force on 1st day of June 2000.
2. Definitions :-
In these Regulations, unless the context requires otherwise, -
i) 'Act' means the Foreign Exchange Management Act,1999 (42 of 1999);
ii) The words and expressions used but not defined in these Regulations shall have the
same meanings respectively assigned to them in the Act.
3. Prohibition on transfer or issue of security :-
Save as otherwise provided in the Act or rules or regulations made or issued thereunder, or
with the general or special permission of the Reserve Bank, no branch, office or agency in
India of a person resident outside India shall transfer or issue any security or foreign
security in India.
4. Transfer or Issue of Security with the permission of Reserve Bank :-
The Reserve Bank, on application made to it and being satisfied that it is necessary to do
so, may, subject to such terms and conditions as are considered necessary, permit a
branch, office or agency in India of a person resident outside India to transfer or issue any
security or foreign security in India.
(P.R. GOPALA RAO)
Executive Director
Published in the Official Gazette of Government
of India - Extraordinary - Part-II, Section 3,
Sub-Section (i) dated 05.05.2000 - G.S.R.No.385(E)
