Regulatory Alerts2026-05-25 | FE Circular No. 02 of 2026Added · Updated
Delegation of Functions: Registration of Shares/Units on Repatriable Basis Issued/ Transferred to Non-Residents and Designation of Authorized Dealer
The document delegates the functions of registering shares or units on a repatriable basis issued or transferred to non-residents, as well as the designation of Authorized Dealers for remitting dividend and disinvestment proceeds, to Authorized Dealers. It amends specific paragraphs in the Foreign Exchange Manual and introduces Standard Operating Procedures to simplify documentary requirements and ensure industry consistency. These instructions become effective one month after issuance, requiring Authorized Dealers to inform their constituents of the amendments for compliance.
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FE Circular No. 02
Delegation of Functions: Registration of Shares/Units on Repatriable Basis Issued/ Transferred to Non-Residents and Designation of Authorized Dealer
May 25, 2026
35646
The Presidents/ Chief Executives of All Authorized Dealers in Foreign Exchange Dear Sir / Madam,
Delegation of Functions: Registration of Shares/Units on Repatriable Basis Issued/ Transferred to Non-Residents and Designation of Authorized Dealer
Attention of Authorized Dealers (ADs) is invited to Para 16, Chapter 14 and Paras 7(v), 7(vi) & 7(vii) of Chapter 20 of the Foreign Exchange Manual (FEM) wherein the process of designation and registration of shares/units have been specified. 2. In order to promote ease of doing business and facilitate foreign investors, it has been decided to delegate the functions of registration of shares/units on repatriable basis issued/transferred by local companies/funds to the non-residents and designation of ADs for the purpose of remittance of dividend and disinvestment proceeds to non-resident shareholders/unitholders to ADs. Furthermore, the documentary requirements for registration of shares/units on repatriable basis have been simplified. 3. Accordingly, Para 16, Chapter 14 and Paras 7(v), 7(vi) & 7(vii), Chapter 20 of FEM have been suitably amended. Further, in order to provide guidance to ADs regarding the above-mentioned delegated functions and ensure consistency across the industry, Standard Operating Procedures (SOPs) have been developed and made part of the revised instructions. The amended Paras and SOPs are attached as Annex-A and Annex-B , respectively. 4. In order to allow ADs adequate time to put in place the required institutional arrangements, these instructions shall be effective one month after issuance of this F.E. Circular. 5. The ADs are advised to bring the above amendments to the notice of all their constituents for meticulous compliance.
Enclosed:
Annexure-A: Revised paras of FEM
Annexure-B: Standard Operating Procedures
Yours sincerely,
Dr. Asif Ali Director
Home — Circulars — FE Circular No. 02
Delegation of Functions: Registration of Shares/Units on Repatriable Basis Issued/ Transferred to Non-Residents and Designation of Authorized Dealer
May 25, 2026