Section 21 in The Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004
21. Prohibition on issue of foreign security by a person resident in India .--(1) Save as otherwise provided in the Act or in sub-regulation (2), no person resident in India shall issue or transfer a foreign security.
(2)A person resident in India, being an Indian Company or a Body Corporate created by an Act of Parliament,--(i)may issue FCCBs not exceeding [US $ 750 Million] to a person resident outside India in accordance with and subject to the conditions stipulated in Schedule I;(ii)may issue FCCBs beyond [US $ 750 Million] [Substituted for the words "US $ 500 Million" by Notification No. G.S.R. 608(E) dated 16.3.2012 (w.e.f. 23.9.2011)] with the specific approval of the Reserve Bank;[Provided that under these Regulations, the Reserve Bank may, in consultation with the Government of India, change/ prescribe for the automatic as well as the approval route of FCCBs, any provision or proviso for issuance of FCCBs.] [Inserted by Notification No. G.S.R. 921(E) dated 2.12.2015 (w.e.f. 19.11.2004).](iii)[ may issue Foreign Currency Exchangeable Bonds to a person resident outside India in accordance with and subject to the conditions specified in Schedule IV with the specific approval of the Reserve Bank.] [ Inserted by G.S.R. 301(E), dated 1.5.2009 (w.r.e.f. 23.9.2008).][Provided that under these Regulations, the Reserve Bank may, in consultation with the Government of India, change/ prescribe any provision or proviso for issuance of FCEBs.] [Inserted by Notification No. G.S.R. 921(E) dated 2.12.2015 (w.e.f. 19.11.2004).](3)The company/body corporate referred to in sub-regulation (2), issuing the FCCBs shall, within 30 days from the date of issue, furnish a report to the Reserve Bank giving the details and documents as under:-(a)total amount for which FCCBs have been issued,(b)names of the investors resident outside India and number of FCCBs issued to each of them,(c)the amount repatriated to India through normal banking channels and/or the amount received by debit to NRE/FCNR accounts in India of the investors (duly supported by bank certificate).
