Credit of sale proceeds of Foreign Direct Investments in India to NRE/FCNR (B) accounts - Clarification
HITHERTO, in terms of Schedule 3, 4 and 5 of the FEMA Notification No. 20/2000-RB dated May 3, 2000, sale proceeds of Foreign Investments in India were treated as eligible credit to NRE/FCNR (B) accounts, where the purchase consideration was paid by the Non-resident Indians / Persons of Indian Origin out of inward remittance or funds held in their NRE/FCNR (B) accounts and subject to applicable taxes, if any.
It is now clarified that the same facility would be available to NRIs/ PIOs under Regulation 11 of the said Notification.
RBI Circular No. 16/RBI., Dated: September 15, 2011