Indian resident can acquire shares in a foreign company

General permission has been granted to persons (individual) resident in India for purchase / acquisition of securities as under:

1. Out of funds held in the RFC account;

2. As bonus shares on existing holding of foreign currency shares;

3. When not permanently resident in India, from the foreign currency resources outside India.

General permission is also available to sell the shares so purchased or acquired. A resident Indian can remit up to USD75,000/- per financial year under the Liberalised Remittance Scheme (LRS), for permitted current and capital account transactions including purchase of securities. The resident individual is allowed to set up/acquire JV/WOS overseas within the LRS limit with effect from August 5, 2013 in terms of FEMA Notification No. 263 subject to the terms and conditions specified therein.