Section 5(2) in The Foreign Exchange Management [Withdrawal Of General Permission To Overseas Corporate Bodies (Ocbs)] Regulations, 2003
(2)(a)No investment in any security shall be made by an OCB;(b)an OCB may--(i)transfer an existing investment in the form of shares or convertible debentures held by it, by sale or gift to any non-resident Indian (NRI);(ii)dispose of the existing investment in the form of shares held by it, by sale at a rate not exceeding the prevailing market rate through a registered stock broker on a recognised stock exchange in India;(c)an OCB shall not be eligible to purchase equity or preference shares or convertible debentures offered on right basis by an Indian company, and no Indian company shall offer equity or preference shares or convertible debentures on right basis to an OCB;(d)where any offer on right basis made to an OCB before the date of commencement of these regulations, is existing on that date, the OCB may renounce it in favour of any person resident in India or a person resident outside India who is eligible to invest in a security of an Indian company under the regulations.
