NTF. NO. FEMA 86/2003-RB, DT. 01/03/2003

Foreign Exchange Management (Transfer or Issue of any Foreign Security) (Amendment) Regulations, 2003

In exercise of the powers conferred by clause (a) of sub-section (3) of Section 6 and 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.19/RB-2000, dated May 3, 2000, the Reserve Bank of India makes the following amends to the Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2000, as amended from time to time namely :

Short Title and Commencement

1. (i) These Regulations may be called the Foreign Exchange Management (Transfer or Issue of any Foreign Security) (Amendment) Regulations, 2003.

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

Amendment of the Regulations

In the Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2000, in Regulation 6 -

a) in sub-regulation (2),

i. in clause (i), in the second proviso, for the words and figure "US $ 50 million", the words and figure "US $ 100 million", shall be substituted;

ii. for clause (iii), the following clause shall be substituted, namely : -


"(iii) The direct investment is made in the overseas JV or WOS engaged in a bonafide business activity;"

b) in sub-regulation (3),

i. in clause (ii), for the words and figure "not exceeding 50%," the words and figure "up to 100%", shall be substituted;

ii. the proviso shall be omitted.

( K.J. Udeshi )
Executive Director

G.S.R.No.629(E) dated March 1, 2003

Foot-note:

The Principal Regulations were published in the Official Gazette vide G.S.R.No.456(E) dated May 15, 2000 in Part II, Section 3, Sub-Section (i) and subsequently amended vide G.S.R.No.157(E) dated March 2, 2001, G.S.R.No.258(E) dated April 9, 2002, G.SR.NO.259(E) dated April 9, 2002, G.S.R.No.263(E) dated April 9, 2002, G.S.R.No.265(E) dated April 9, 2002, G.S.R.No.475(E) dated July 8, 2002 and G.S.R.No.34(E) dated January 16, 2003.

(Above Foot note has been added vide CORRIGENDUM - G.S.R. No.746(E), DT. 16/11/2004)

(Pl. refer CIR. NO. 65/2003-04-RB, DT. 05/02/2004 - Foreign Exchange Management Act, 1999-Amendments to Foreign Exchange Management Regulations )

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