Can Overseas Corporate Body [OCB] invest in Indian stocks through PIS?
OCBs are not allowed to make fresh investments in India under the Portfolio Investment Scheme vide Notification No. FEMA 46 dated 29th November 2001. Further, in September 2003, RBI has banned OCBs from investing in any manner in India. However, they can continue to hold and sell shares purchased before 29th November 2001. Accordingly OCBs may open a demat account, however it can be only for the purpose of dematerializing the existing holdings. Existing OCBs (i.e. prior to Sep 16, 2003) must intimate the designated bank branch immediately on the holding/interest of NRIs in the OCB becoming less than 60%.
