Can an overseas corporate body i.e OCBs invest shares in the Indian market?
No, OCBs cannot invest in the Indian markets. OCBs have been derecognized as investor class in India since September 16, 2003.
An overseas corporate body is a company, partnership firm, society or any other corporate body owned directly or indirectly by a Non-Resident Indian and includes an overseas trust where not less than sixty per cent beneficial interest is held by Non-Resident Indians directly or indirectly. Such an ownership interest has to be held by them and not in the capacity of a nominee.
As per the Foreign Exchange Management Regulations, 2003, no fresh account in whatever name can be opened by an OCB. However, the OCB’s can continue to hold and sell shares purchased before 29th November 2001.
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