Section 4(2) in The Foreign Exchange Management (Transfer Or Issue Of Security By A Person Resident Outside India) Regulations, 2000
(2)A registered Foreign Institutional Investor (FII) may purchase [shares or convertible debentures or warrants] [Substituted for the words "shares or convertible debentures" by Notification No. G.S.R. 436 (E), dated 30.6.2014 (w.e.f. 8.11.2005)] of an Indian company under the Portfolio Investment Scheme, subject to the terms and conditions specified in Schedule 2 : [and the limits and margin requirements prescribed by RBI/SEBI as well as the stipulations regarding collateral securities as specified by the Reserve Bank from time to time.] [Inserted by Notification No. G.S.R. 821 dated 7.3.2012 (w.e.f. 8.5.2000)][* * *] [Proviso omitted by G.S.R. 504(E), dated 22.7.2005 (w.e.f. 25.7.2005).][Provided further that Foreign Institutional Investors shall not invest in the paid up equity capital of Asset Reconstruction Companies.] [Inserted by G.S.R. 413(E), dated 9.6.2006 (w.r.e.f. 8.11.2005).]
