Section 8(2) in The Foreign Exchange Management (Deposit) Regulations, 2000
(2)Deposits accepted by an Indian company by issue of Commercial Paper to a Non-Resident Indian [or a Foreign Institutional Investor registered with the Securities and Exchange Board of India] shall be subject to the following conditions, namely:--(a)the issue is in due compliance with the Non-Banking Companies (Acceptance of Deposits through Commercial Paper) Directions, 1989 issued by the Reserve Bank as also any other law, rule, directions, orders issued by the Government or any other regulatory authority, in regard to acceptance of deposits by issue of Commercial Paper;(b)payment for issue of Commercial Paper is received by the issuing company by inward remittance from outside India through normal banking channels or out of funds held in a deposit account maintained by a Non-Resident Indian [* * *] [ Certain words omitted by G.S.R. 836(E), dated 3.10.2003 (w.e.f. 23.10.2003).] accordance with the regulations made by Reserve Bank in that regard;(c)the amount invested in Commercial Paper shall not be eligible for repatriation outside India; and(d)the Commercial Paper shall not be transferable.
