English

Justify the following statement. A Foreigner can invest in shares of an Indian company.

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Question

Justify the following statement.

A Foreigner can invest in shares of an Indian company.

Short/Brief Note
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Solution

Foreigner (Non-Resident-NRI): A foreigner (NRI) can buy shares and become a member of a company but this is subject to Foreign Exchange Regulation Act, 1999 (FEMA 1999) under which the permission of the Reserve Bank of India is necessary before allotment of any shares is made to a foreigner. If at any time the foreigner becomes an alien enemy, his rights as a member of the company are suspended.

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Members of a Company
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Chapter 5: Members of a company - Exercise Q.5 [Page 75]

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Balbharati Secretarial Practice [English] 11 Standard Maharashtra State Board
Chapter 5 Members of a company
Exercise Q.5 | Q 2 | Page 75

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