The Reserve Bank of India (RBI) has allowed foreign
companies to open escrow or special accounts in authorised
banks for buying shares in Indian companies - a move
that gives them more flexibility in acquiring local
banks may open escrow or special accounts on behalf
of non-residents for the purpose of open offers, delisting
offers and exit offers subject to SEBI regulations,
RBI said in a notification.
banks will not require prior approval of the Reserve
Bank to open such accounts and these could be operated
by persons appointed by the firms, the RBI said.
non-interest bearing accounts could be opened in Indian
currency jointly for the purpose. However, banks will
not be allowed to provide any facilities against balance
in these accounts, the notification added.
RBI is expected to notify necessary amendments in the
foreign exchange management regulations shortly in this
regard. Meanwhile, as part of measures to boost oil
and gas exploration in the country, the RBI eased norms
for field consortium members to make payments to the
in a notification, allowed banks to make payment towards
cash calls to the operator for oil exploration in India
either in foreign currency or in Indian rupee.
call is the expenditure incurred by oilfield operators,
which is reimbursed by the consortium as per the production
RBI has asked banks to ensure that the demand made by
the operator for payment toward cash calls is as per
the production sharing agreement. It, however, asked
banks to obtain a no-objection certificate from the
income tax department before making any such payments.