Section 27 in The Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004
27. [ Opening of demat accounts by clearing corporations of stock exchanges and clearing members.
- A person resident in India being a Securities and Exchange Board of India approved clearing corporation of stock exchanges and their clearing members may, subject to the guidelines issued by the SEBI from time to time:(i)open and maintain demat accounts with foreign depositories and acquire, hold, pledge and transfer the foreign sovereign securities, offered as collateral by FIIs;(ii)remit the proceeds arising from corporate action, if any, on such foreign sovereign securities; and(iii)liquidate such foreign sovereign securities and repatriate the proceeds thereof to India.]
