The Reserve Bank (RBI) today said non-residents including NRIs can make investment in an Indian company at the face value of shares or debentures subject to compliance with FDI scheme. "It has been decided that in cases,where non-residents (including NRIs) make investment in an Indian company in compliance with the provisions of the Companies Act.,such investments may be made at the face value subject to their eligibility to invest under the FDI scheme," RBI said in a circular. As per the existing norms,non-residents are allowed to purchase shares or convertible debentures of an Indian company up to the extent and subject to terms and conditions set out under the FDI scheme. Moreover,a person purchasing shares proposes to be collaborator or proposes to acquire the entire share holding of a new Indian company is required to obtain prior permission of the government if he has a previous venture or tie-up in India through investment in shares or debentures. It also requires that the price of shares issued to persons resident outside India under this scheme shall not be less than the price worked out in accordance with the Sebi guidelines,if the issuing company is listed on any recognised stock exchange in India. And fair valuation of shares should be done by a chartered accountant as per the guidelines issued by the Controller of Capital Issues,in all other cases,as per RBI.
