Notification No.FEMA/46/2001-RB

Dated November 29, 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 :-

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.

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.'

3. In Schedule 3 to the Principal Regulations, -

i. in the Heading, for the words 'NRI/OCB', the word 'NRI' shall be substituted;

ii. in paragraph 1,

a. for the words 'NRI/OCB', 'NRI or OCB', and 'NRIs or OCBs' wherever they occur, the words 'NRI', 'NRI' and 'NRIs' respectively shall be substituted;

b. the words 'or an Overseas Corporate Body (OCB)' shall be omitted;

c. in sub-paragraph (i), for the words 'his/its', the word 'his' shall be substituted;

d. sub-paragraph (vii) shall be omitted;

iii. for paragraph 2, the following paragraph shall be substituted,namely :-

'The link office of the designated branch of an authorised dealer referred to in paragraph 1 shall furnish to the Chief General Manager, RBI, ECD, Central Office, Mumbai, a report on daily basis on PIS transactions undertaken by it, such report to be furnished on line or on floppy or in hard copy in a format supplied by Reserve Bank'.