Sneha, a resident of India, wants to invest her savings. She considers buying shares of a US-based company to benefit from the growing tech market.…

CA Intermediate · Corporate and Other Laws · MTP · January 2025
Sneha, a resident of India, wants to invest her savings. She considers buying shares of a US-based company to benefit from the growing tech market. She is unsure if such an investment is allowed under the Foreign Exchange Management Act, 1999. Advise whether Sneha can invest in shares of the US-based company?
(A) Yes, such investments are allowed.
(B) No, such investments are not allowed.
(C) Yes, but only if the investment is for US$ 5000.
(D) No, unless she is a non-resident Indian (NRI).

Suggested Answer and Working Notes:

Correct Answer: Option (A)

Yes, such investments are allowed.

Topics: The Foreign Exchange Management Act, 1999

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