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Overseas Corporate Bodies (OCBs) are no longer recognized as a class of investor entity in India since September, 2003. Therefore, the Reserve Bank of India has made the following Regulations for withdrawal of general permission to Overseas Corporate Bodies (OCBs) to undertake transactions:

• No fresh account to be opened or maintained in the name of an OCB;
• An existing NRE (Saving and Current) Account held or maintained in the name of an OCB to be closed and balances to be repatriated;
• An existing NRO (Saving) Account held or maintained in the name of an OCB to be closed and balances transferred to non-interest bearing NRO (Current) Account;
• An existing NRE (Recurring / Fixed Deposit) Account or FCNR Account held in the name of an OCB to be continued till original maturity and the proceeds to be repatriated on maturity;
• An existing NRO (Recurring / Fixed) Account held in the name of an OCB to be continued till original maturity and on maturity the proceeds to be credited to NRO (Current) Account;
• No facility of any nature to be granted on the security of an account held in the name of an OCB;
• Non-renewal and closure of any loan or other facility granted against the security of a Recurring / Fixed Deposit Account held in the name of an OCB;
• No investment in any security to be made by an OCB;
• An OCB may transfer an existing investment held by it (shares / convertible debentures) by sale / gift to any Non-resident Indian or dispose it of by sale through a registered stock broker on a recognized stock exchange in India;
• An OCB not to be eligible to purchase equity or preference shares or convertible debentures offered on right basis by an Indian company and an Indian company not allowed to offer the same;
• An OCB to renounce the shares offered on rights basis before the commencement of these Regulations in favour of a person resident in India / a person resident outside India who is eligible to invest in a security of an Indian company;
• No person resident in India to either borrow from or lend to an OCB either in foreign exchange or in Rupees;
• Non-renewal on becoming due, of any outstanding borrowing from or loan to an OCB, whether in foreign exchange or in Rupees, and non accrual of any interest after it falls due for repayment.

Permission to hedge certain transactions:

An OCB may enter into a forward contract with rupee as one of the currencies with an Authorised Dealer in India to hedge:

• the amount of dividend due to it on an existing investment in the form of shares of an Indian company;
• the balances held in an existing Foreign Currency Non- Resident (FCNR) account or Non-resident External Rupee (NRE-Rupee) Term Deposit account;
• the amount of existing investment made under Portfolio Investment Scheme in accordance with the relevant Acts and Regulations governing it.