9A.9
- Document type
- Manual
- Dated
- Category
- Exchange Management Manual
Acceptance of Directorship of Overseas Companies and Acquisition of Qualification Shares
Persons resident in India are free to accept appointments as directors on the boards of the overseas companies. They will, however, require permission from Reserve Bank for remittance towards acquisition of qualification shares, if any, of the overseas companies for which application should be made in form A2 together with an offer letter of the overseas company to the concerned Regional Office of Reserve Bank through an authorised dealer. In approved cases, on receipt of shares from the foreign concern, an application in form FAD 2 should be made to the concerned office of Reserve Bank by the director concerned for issue of necessary holding licence. Such directors are required to repatriate to India promptly, remuneration, if any, received by way of sitting fees, etc. through normal banking channels.