Section 4 in The Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004
4. Purchase and sale of foreign security by a person resident in India. - A person resident in India--
(a)may purchase a foreign security out of funds held in Resident Foreign Currency (RFC) account maintained in accordance with the Foreign Exchange Management (Foreign Currency Accounts) Regulations, 2000;(b)may acquire bonus shares on the foreign securities held in accordance with the provisions of the Act or rules or regulations made thereunder;(c)when not permanently resident in India, may purchase a foreign security from out of his foreign currency resources outside India;(d)may sell the foreign security purchased or acquired under clause (a), (b) or (c).Explanation .-For the purpose of this clause, "not permanently resident" means a person resident in India for employment of a specified duration (irrespective of length thereof) or for a specific job or assignment, the duration of which does not exceed three years.
