| Date: |
22-02-2001
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| Notification No: |
RBI A P D (Series)Circular No 26/2001
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| Issuing Authority: |
RBI
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| Type: |
A.P.D.(Series) Circulars
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| File No: |
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| Subject: |
Investment by FIIs/ NRIs/ OCBs/ Foreign Venture Capital Investors in companies engaged in the Print Media Sector
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Investment by FIIs/ NRIs/ OCBs/ Foreign Venture Capital Investors in
companies engaged in the Print Media Sector
Attention
of authorised dealers is invited to �Foreign Exchange Management (Transfer or
Issue of Security by a Person Resident outside India) Regulations, 2000�
notified under Notification No. FEMA.20/2000-RB dated 3rd May 2000.
In terms of sub-regulations (2), (3) and (5) of Regulation 5, Foreign
Institutional Investors (FIIs) / Non-Resident Indians (NRIs) / Overseas
Corporate Bodies (OCBs) and Foreign Venture Capital Investors (FVCIs) were
permitted to purchase shares and convertible debentures of Indian Companies.
2.
In consultation with the Government of India it has now been decided that
the facility to FIIs/ NRIs/ OCBs and FVCIs to purchase shares or convertible
debentures of an Indian Company, which is engaged in the print media sector,
should be withdrawn. Accordingly, the Foreign Exchange Management (Transfer or
Issue of Security by a Person Resident outside India) Regulations, 2000 have
been amended vide Notification No. FEMA.35 /2000-RB dated 16th
February 2001 (copy enclosed). It is clarified that the restriction shall also
apply to purchase of shares and convertible debentures by NRIs and OCBs on
non-repatriation basis.
3.
Authorised Dealers may bring the contents of this circular to the notice
of their constituents concerned.
4.
The directions contained in this circular have been issued under Section
10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of
1999). Any contravention or non-observance of these directions is subject to the
penalties prescribed under the Act.
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