Is permission of Reserve Bank required for investments in Indian Companies?

Question: Is permission of Reserve Bank required for making investments in new issues of Indian companies on non-repatriation basis?

Answer(s)

Raju Kanumuri: No. Indian companies have been granted general permission to accept investments on non-repatriation basis, in shares/convertible debentures by way of new/rights/bonus issue provided the investee company does not carry on agricultural/plantation activity and/or real estate business (excluding real estate development i.e. development of property and construction of houses).

Source : Reserve Bank Of India

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