Regulatory Alerts2026-05-25 | FE Circular No. 02Delegation of Registration Functions for Repatriable Shares and Units to Authorized Dealers
The Exchange Policy Department delegates the registration of repatriable shares and units issued to non-residents, along with the designation of Authorized Dealers for remitting dividend and disinvestment proceeds. This circular amends the Foreign Exchange Manual to simplify documentary requirements and incorporates standardized operating procedures to ensure industry-wide consistency. Authorized Dealers must implement these institutional changes within one month and notify their constituents to ensure strict compliance.
Circulars/Notifications - Exchange Policy Department
FE Circular No. 02 of 2026
May 25, 2026
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.
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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.
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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 Annexure-A and Annexure-B , respectively.
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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.
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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 truly,
-sd-
(Dr. Asif Ali) Director