Reserve Bank of India vide its circular bearing No A.P. (DIR Series) Circular No. 38 dated 06.09.2013 has permitted non residents including non- resident Indian to acquire shares of a listed Indian Company in Stock Exchange through registered broker under FDI Scheme, on compliance with following conditions:
- The non-resident investor has already acquired and continues to hold the control as per SEBI (Substantial Acquisition of Shares and Takeover) Regulations.
- Consideration for transfer of shares to non resident may be paid by way of inward remittance through normal banking channels, or by debitting the NRE/ FCNR account, or non interest bearing Escrow account maintained by non-resident investor, or out of dividend payable by Indian Investee Company, in which said non resident investor holds control.
- The pricing for subsequent transfer of shares to non-resident shareholder shall be according to FEMA pricing guidelines.
- The original and resultant investments shall company with FEMA guidelines pertaining to sectoral cap, entry route, reporting requirement, documentation, etc;