In Foreign Exchange,
AND TRANSFER OF SHARES IN FAVOUR OF NON-RESIDENTS
Dealers are aware that they were given power, vide F.E.
Circular No. 79 dated 21st September, 1992,
to approve remittances representing refunds of subscription
money relating to applications which are rejected during
post ballot scrutiny. A complaint has been made that the
refunds in such cases are delayed and the reason communicated
to the applicants by the companies is that the delay is
due to time taken by the State Bank in granting the permission
for remittance. Authorized Dealers are requested to note
to bring the provisions of F.E.
Circular No. 79 of 1992 to the attention of all those
clients who designate them in future for collection of subscriptions.
Another complaint made by the non-resident share-holders
is that the dividend payable to them is remitted in U.S.
Dollar through bank drafts drawn on banks in New York and
their collection banks deduct their own charges which, in
some countries, represent a substantial portion of the dividend.
Collection of the drafts also takes much time. Authorized
Dealers may like to suggest to the companies which have
designated them to remit the dividend to the concerned non-residents
abroad that each non-resident share-holder, eligible for
receiving payment of dividend in foreign exchange, may be
given the choice of receiving the dividend in U.S. Dollar
or in the currency of the country where he is residing,
through a bank draft drawn on a bank in that country, if
the Authorized Dealer is maintaining an account in that