The Reserve Bank of India has amended its Foreign Exchange Management rules on the mode of payment and reporting of non-debt instruments. The changes revise how individual persons resident outside India, including Non-Resident Indians and Overseas Citizens of India, can fund and receive proceeds from repatriable investments, set payment and remittance rules for purchases or subscriptions of equity shares of Indian companies listed on international exchanges, and update reporting by designated Authorised Dealer Category I banks. For investments on a repatriation basis under Schedule III, consideration must be paid through inward remittance from abroad or from repatriable deposit accounts, and the investor must designate a repatriable rupee account to be used exclusively for investments under that schedule. For National Pension System subscriptions by NRIs and OCIs, payment may be made through inward remittance or from repatriable foreign currency, repatriable rupee or NRO accounts. Sale proceeds net of taxes from equity instruments may be remitted abroad or credited to the investor's designated rupee account, while proceeds from mutual fund units and National Pension System subscriptions may be remitted abroad or credited to any account maintained under the Foreign Exchange Management (Deposit) Regulations, 2016 at the investor's option. For Schedule XI transactions involving equity shares of Indian companies listed on an international exchange, payment may be made through banking channels to the Indian company's permitted foreign currency account, or through inward remittance or funds held in repatriable foreign currency or rupee accounts. Net sale proceeds may be remitted outside India or credited to the permissible holder's bank account maintained under the deposit regulations. The amendment also replaces the reporting requirement in Regulation 4(9), requiring designated Authorised Dealer Category I banks to report purchases and transfers of equity instruments by individual foreign investors, including NRIs and OCIs, on Indian stock exchanges in Form LEC (IFI). The amended regulations take effect from the date of publication in the Official Gazette.
Reserve Bank of India2026-06-13
Reserve Bank of India amends non debt investment payment and reporting rules for NRI OCI investors and international exchange share transactions
The Reserve Bank of India has revised FEMA rules on payment and reporting for non-debt investments by non-resident individuals. The amendments set updated funding and sale-proceeds rules for NRI and OCI investments on a repatriation basis and for Indian company shares listed on international exchanges. They also require designated Authorised Dealer Category I banks to report relevant stock exchange purchases and transfers in Form LEC (IFI).