Foreign Exchange Management (Transfer or Issue of
Security by a Person Resident outside India)
(Amendment) Regulations, 2001

In exercise of the powers conferred by clause (b) of sub-section (3) of Section 6 and Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), and in partial modification of its Notification No.FEMA 20/2000-RB dated 3 rd May, 2000, the Reserve Bank of India makes the following Regulations to amend the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000, namely :-

Short title and commencement :-

1. (i) These Regulation may be called the Foreign Exchange Management
( Transfer or Issue of Security by a Person Resident outside India ) (Amendment) Regulations, 2001.

     (ii) They shall come into force with immediate effect.

Amendment of the Regulations:-

2. In the Foreign Exchange Management ( Transfer or Issue of Security by a Person Resident outside India ) Regulations, 2000 (hereinafter referred to as "the Principal Regulations"),

in Regulations 5, for sub-regulation (3), the following sub-regulation shall be substituted, namely :-

"(3) (i) A Non-resident Indian (NRI) may purchase shares or convertible debentures of an Indian Company on a Stock Exchange under Portfolio Investment Scheme, subject to the terms and conditions specified in Schedule 3, provided that the NRI shall not purchase shares or convertible debentures of an Indian Company which is engaged in Print Media sector.

(ii) A non-resident Indian or an Overseas Corporate Body may purchase shares or convertible debentures of an Indian company on non-repatriation basis other than under Portfolio Investment Scheme subject to the terms and conditions specified in Schedule 4, provided that the NRI or OCB shall not purchase shares or convertible debentures of an Indian Company which is engaged in Print Media sector." ...continued