Section 2 in The Foreign Exchange Management (Transfer Or Issue Of Security By A Person Resident Outside India) Regulations, 2000
2. Definitions.
- In these regulations, unless the context requires otherwise,(i)"Act" means the Foreign Exchange Management Act, 1999 (42 of 1999);(ia)[ "Asset Reconstruction Company (ARC)" means a company registered with the Reserve Bank of India under section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act).] [Inserted by G.S.R. 413(E), dated 9.6.2006 (w.r.e.f. 8.11.2005).](ii)[ "capital" means equity shares, preference shares, convertible preference shares, and convertible debentures;] [Substituted by Notification No. G.S.R. 896 (E) dated 22.8.2008 (w.e.f. 1.5.2007)][Explanation : The equity shares issued in accordance with the provisions of the Companies Act, as applicable, shall include equity shares that have been partly paid. Preference shares and convertible debentures shall be required to be fully paid, mandatorily and fully convertible.] [Inserted by Notification No. G.S.R. 436 (E), dated 30.6.2014 (w.e.f. 8.11.2005)](iiA)[ 'convertible note' means an instrument issued by a startup company evidencing receipt of money initially as debt, which is repayable at the option of the holder, or which is convertible into such number of equity shares of such startup company, within a period not exceeding five years from the date of issue of the convertible note, upon occurrence of specified events as per the other terms and conditions agreed to and indicated in the instrument;] [Substituted ''Category I Alternative Investment Fund (Cat-I AIF)' means an Alternative Investment Fund registered under the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 which raises money and invests in such funds or sectors or activities or areas in accordance with the said Regulations.' by Notification No. G.S.R. 16(E), dated 10.1.2017 (w.e.f. 8.5.2000).](iib)[ "preference shares" mean compulsorily and mandatorily convertible preference shares.] [Inserted by Notification No. G.S.R. 896 (E), dated 22.8.2008 (w.e.f. 1.5.2007)](iic)[ "debenture" means compulsorily and mandatorily convertible debenture.] [Inserted by Notification No. G.S.R. 896 (E), dated 22.8.2008 (w.e.f. 8.6.2007).](iii)"registered foreign institutional investor (FII)" means the foreign institutional investor registered with SEBI;(iiia)[ "foreign venture capital investor" means an investor incorporated and established outside India which proposes to make investment in venture capital fund(s) or venture capital undertaking(s) in India and is registered with SEBI under SEBI (Foreign Venture Capital Investors) Regulations, 2000;] [Inserted by G.S.R. 175(E), dated 26.12.2000 (w.e.f. 13.3.2001).](iiib)[ "Foreign Central Bank" means an institution/organization/body corporate established in a country outside India and entrusted with the responsibility of carrying out central bank functions under the law for the time being in force in that country;] [Inserted by G.S.R. 712(E), dated 17.10.2007 (w.e.f. 14.11.2007).](iv)"Government approval" means approval from the Secretariat for Industrial Assistance (SIA), Department of Industrial Policy and Promotion, Government of India or, as the case may be, Foreign Investment Promotion Board (FIPB) of the Government of India;(iva)[ 'Group company' means two or more enterprises which, directly or indirectly, are in a position to :(i)exercise twenty-six per cent, or more of voting rights in other enterprise; or(ii)appoint more than fifty per cent, of members of board of directors in the other enterprise.](v)Indian company means a company incorporated in India;(va)[ "Indian Depository Receipts (IDRs)" shall have the meaning as assigned to it in the Companies (Issue of Indian Depository Receipts) Rules, 2004;][* * *] [Omitted '(vb) 'Indian venture capital undertaking' means a company incorporated in India whose shares are not listed on a recognized stock exchange in India and which is not engaged in an activity under the negative list specified by SEBI;' by Notification No. G.S.R. 465(E), dated 28.4.2016 (w.e.f. 8.5.2000).](vi)"investment on repatriation basis means an investment the sale proceeds of which are, net of taxes, eligible to be repatriated out of India, and the expression 'investment on non-repatriation basis", shall be construed accordingly;(vii)Joint Venture QV) and Wholly Owned Subsidiary shall have the meanings respectively assigned to them in the Foreign Exchange Management (Transfer and Issue of Foreign Security) Regulations, 2000;(viia)[ Non-Resident Indian (NRI) means an individual resident outside India who is citizen of India or is an 'Overseas Citizen of India' cardholder within the meaning of section 7 (A) of the Citizenship Act, 1955.] [Substituted by Notification No. G.S.R. 165(E), dated 15.2.2016 (w.e.f. 8.5.2000).][(vii AA) "Manufacture", with its grammatical variations, means a change in a non-living physical object or article or thing- (a) resulting in transformation of the object or article or thing into a new and distinct object or article or thing having a different name, character and use; or (b) bringing into existence of a new and distinct object or article or thing with a different chemical composition or integral structure.] [Inserted by Notification No. G.S.R. 165(E), dated 15.2.2016 (w.e.f. 8.5.2000).](viii)[* * *] [Omitted by G.S.R. 558(E), dated 18.6.2003 (w.e.f. 22.7.2003).] "Overseas Corporate Body (OCB)", shall have the meanings respectively assigned to them in the Foreign Exchange Management (Deposit) Regulations, 2000;(viiia)[ 'Qualified Foreign Investor' (QFI) means [Inserted by Notification No. G.S.R. 795 (E) dated 19.10.2012 (w.e.f. 9.8.2011)](a)during the period from 9th day of August, 2011 to 15th day of July, 2012, a person who satisfied the following criteria at the relevant time,(i)resident of a country, that is complaint with the Financial Action Task Force (FATF) standards and is a signatory to the IOSCO's Multilateral Memorandum of Understanding (MMoU); and(ii)satisfied the KYC requirements stipulated by SEBIProvided that such a person is not registered with SEBI as a Foreign Institutional Investor (FII) or Foreign Venture Capital Investor (FVCI).(b)With effect from 16th day of July, 2012, a person who satisfies the following criteria at the relevant time:(i)Resident in a country that is a member of FATF or a member of a group which is a member of FATF; and(ii)Resident in a country that is a signatory to IOSCO's MMoU (and referred to as Appendix A Signatories therein) or a signatory of a bilateral MoU with SEBIProvided that the person is not resident in a country listed in the public statements issued by FATF from time to time on jurisdictions having strategic AMUCFT deficiencies to which counter measures apply or that have not made sufficient progress in addressing the deficiencies or have not committed to an action plan developed with the FATF to address the deficiencies;Provided that such person is not resident in India;Provided further that such person is not registered with SEBI as a FII or Sub-Account of an FII or FVCLExplanation. - For the purposes of this clause:
