13 July, 2015
Regulation 4(b)(i) of the FEMA Capital Account Regulations restricts a person resident outside India from investing in any entity engaged in the business of chit funds. The circular dated June 11, 2015 now permits non-resident Indians to subscribe to chit funds without any limit on a non-repatriation basis subject to the conditions that (i) the Registrar of Chit Funds or any officer duly authorized by the state government may permit subscription from non-resident Indians without any limit on a non-repatriation basis, and (ii) the subscription amount is brought in through normal banking channels. Corresponding changes have been notified in the FEMA Capital Account Regulations and the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000.
For further information, please contact:
Abhishek Saxena, Partner, Phoenix Legal
abhishek.saxena@phoenixlegal.in
