meta_id 3240301

The Reserve Bank of India (RBI) has issued the Foreign Exchange Management (Mode of Payment and Reporting of Non-Debt Instruments) (Amendment) Regulations, 2026. The amended regulations contain: Regulations prescribing the permitted modes of payment for non-resident individuals, requiring investment consideration to be paid via inward remittance from abroad or through repatriable deposit accounts. Specific rules governing the remittance of sale proceeds, allowing funds from equity instruments or mutual fund units to be remitted outside India or credited to designated rupee or deposit accounts. Provisions outlining the payment mechanisms for subscriptions to the National Pension System by Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs), permitting the use of funds from foreign currency, repatriable rupee, or NRO accounts. New payment and remittance procedures for purchasing equity shares of Indian companies listed on International Exchanges, mandating that consideration be deposited into the Indian company's foreign currency account or received as inward remittance. Administrative amendments imposing a reporting requirement on designated Authorised Dealer Category I banks to report the purchase or transfer of equity instruments by Individual Foreign Investors (IFIs) on Indian stock exchanges to the RBI using Form LEC (IFI). The amendments take immediate effect.