Can an Overseas Corporate Body (OCB) invest in the Indian market?
No, OCB’s cannot invest in the Indian markets. OCB’s have been derecognised as an investor class in India since September 16, 2003. As per the foreign exchange management regulations, 2003, a fresh account cannot be opened by an OCB. However, the OCB’s can continue to hold and sell shares purchased before 29th November 2001.
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 60% 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. Go through this RBI circular (
) to know more.