Notification No. FEMA 56/2002-RB, Dt. 18/03/2002

Foreign Exchange Management (Guarantees) (Amendment) Regulations, 2002

In exercise of the powers conferred by clause (j) of sub-section (3) of Section 6, Sub-Section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999) and in partial modification of its Notification No.FEMA.8/2000-RB dated May 3, 2000, the Reserve Bank of India makes the following Regulations to amend the Foreign Exchange Management (Guarantees) Regulations, 2000, namely :

Short title and commencement :-

1. (i) These Regulations may be called the Foreign Exchange Management (Guarantees) (Amendment) Regulations, 2002.

(ii) They shall come into force from the date of their publication in the Official Gazette.

Amendment to the Regulations

2. In the Foreign Exchange Management (Guarantees) Regulations, 2000 (hereinafter referred to as "the said Regulations") :

i. The existing Regulation 5, Sub-Regulation (a) shall be numbered as "(a)(i)".

ii. after Sub-Regulation (a) (i) as so numbered, the following Sub-Regulation shall be inserted, before Explanation, namely :-

(ii) a person resident in India being an exporter company may give guarantee in lieu of Bid Bond Guarantee, for bidding for a contract outside India without the approval of the Approving Authority provided that the amount of such guarantee shall not exceed 5% of the contract value.

Sd/-
(K.J. Udeshi)
Executive Director

(Pl. refer A.P.(DIR Series) Cir. No. 41/2002-03-RB, Dt. 08/11/2002 for Issue of Corporate Guarantee in lieu of Bid Bond Guarantee)

Presented by eximkey.com