in Foreign Exchange,
CONVERTIBLE RUPEE ACCOUNT
refer to the instructions contained in para 8 of chapter
XX of the Foreign Exchange Manual and para 'H' of F.E. circular
34 of 1998 regarding remittances out of Special Convertible
a view to further strengthen the confidence of foreign portfolio
investors, it has since been decided to restore the powers
of Authorized Dealers maintaining S.C.R.A. as well as offering
custodial services to the same investors to allow outward
remittances from S.C.R.A. of disinvestment proceeds, divident
& broker's commission in respect of transactions taking
place from the date of this circular, subject to their exercizing
checks as prescribed in Annexure 'C'. Where foreign investors
maintain custody services and S.C.R.A. with different institutions,
appliation on form 'M' will be submitted through the Authorized
Dealer maintaining the S.C.R.A. for prior approval of the
case of remittances out of balances already lying in S.C.R.A.
up to the date of this curcular, application on form 'M'
will continue to be submitted to the State Bank for prior
approval along with the documents prescribed in this behalf.
has also been decided that the commission earned by the
international brokers from their overseas clients and credited
net of taxes to the broker's S.C.R.A. will also be remitted
by the Authorized Dealers provided the funds so credited
have emanated from inward remittances or paid out of S.C.R.A.
of the investor. Consequently following new sub-para may
be added as para 8(a)(ii) chapter XX of the Foreign Exchange
commission earned by the international brokers from their
overseas clients and credited net of taxes to the broker's
S.C.R.A. account may be remitted by the Authorized Dealer
provided the funds so credited have emanated from inward
remittances or paid out of S.C.R.A. of the investor."
sub para 8(a)(ii) will be renumbered as sub-para 8(a)(iii).
remittances effected under this general authority will be
reported on form 'M' along with the undertaking as per Annexure
'A' to this circular. The Authorized Dealers will also maintain
a record of the all items enlisted in the checklist as per
enclosed Annexures 'B' & 'C' for inspection/verification
by the State Bank officials and will not be distroyed unless
the inspection is completed.