Section 5(2B) in The Foreign Exchange Management (Deposit) Regulations, 2000
(2B)[ Resident or Non-resident acquirers may, subject to the terms and conditions specified in Schedule 9, open, hold and maintain Escrow Account with Authorised Dealers in India without prior approval of the Reserve Bank, towards payment of share purchase consideration. Resident or Non-resident acquirers may, subject to the terms and conditions specified in Schedule 9, open and maintain, without prior approval of the Reserve Bank, Escrow accounts for securities with SEBI authorised Depository Participants. These facilities will be applicable for both issue of fresh shares to the non-residents as well as transfer of shares from / to the non-residents.] [Substituted by Notification No. G.S.R. 822(E), dated 11.4.2012 (w.e.f. 8.5.2000)][(3)(a) On and from 1st April, 2002-- [Added by G.S.R. 262(E), dated 1.3.2002 (w.e.f. 1.4.2000). ](i)no deposit, whether by way of renewal of existing deposit or otherwise, shall be accepted under the Non-Resident (Non--Repatriable) Rupee Account Scheme (NRNR Account) or the Non-Resident (Special) Rupee Account Scheme (NRSR Account);(ii)existing deposits under the NRNR Account Scheme may be continued only up to the date of maturity;(iii)on maturity of the existing deposit under the NRNR Account Scheme, the maturity proceeds shall be credited to the account holder's Non-Resident (External) Account (NRE Account), after giving notice to the account holder;(b)(i)the existing account in the form of a term deposit of the NRSR Account Scheme may be continued till the date of maturity;(ii)on maturity of the existing term deposit under the NRSR Account Scheme, the maturity proceeds shall be credited to the account-holder's Non--Resident (Ordinary) Account (NRO Account);(iii)existing NRSR account, other than a term deposit, shall not be continued after 30th September, 2002, and may at the option of the account holder; be dosed or the balance therein credited to his NRO account on or before that date.Explanation. - For the purpose of this sub-regulation, "existing deposit" or "existing account" means a deposit or an account held on 31st March, 2002.]
