The Ministry of Finance (MoF) on January 24, 2024, published the Foreign Exchange Management (Non-debt Instruments) Amendment Rules, 2024 to further amend the Foreign Exchange Management (Non-debt Instruments) Rules, 2019.
This shall come into force on January 24, 2024
The following has been amended namely: -
•In rule 2 which states “definitions” (i) after clause (aa), the following clause shall be inserted, namely: -
‘(aaa) “International Exchange” shall mean permitted stock exchange in permissible jurisdictions which are listed at Schedule XI annexed to these rules;’;
(ii) for clause (ag), the following clause shall be substituted, namely: -
‘(ag) “listed Indian company” means an Indian company that has any of its equity instruments or debt instruments listed on a recognized stock exchange in India and on an International Exchange and the expression “unlisted Indian company” shall be construed accordingly;’
• After Chapter IX which states “Investment in Depository Receipts by a person resident outside India” the following Chapter shall be inserted, namely: -
‘Chapter X- Investment by Permissible Holder in Equity Shares of Public Companies Incorporated in India and Listed on International Exchanges.
[Notification No. S.O. 332(E)]
