Notification No. FEMA 90/2003-RB Date 23/05/2003

Foreign Exchange Management (Foreign Currency Account by a Person Resident in India ) (Third Amendment) Regulations, 2003

In exercise of the powers conferred by clause (b) of Section 9 and clause (e) of 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 10/2000-RB dated 3rd May, 2000, as amended from time to time, the Reserve Bank of India makes the following amendments in the Foreign Exchange Management (Foreign Currency Account by a person resident in India ) Regulations, 2000, namely :

1. Short title and commencement

(a) These regulations may be called the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India ) (Third Amendment) Regulations, 2003.

(b) They shall come into force on their publication in the Official Gazette.

2. Amendment of the Regulation

In the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India ) Regulations, 2000

(a) In Regulation 5A, in sub-regulation (1), after clause (d), the following clauses shall be added, namely :

"(e) as gift from a close relative;

Explanation : For the purpose of this clause, "close relative'' means relatives as defined in Section 6 of the Companies Act, 1956.

(f) by way of earning through export of goods / services, or as royalty, honorarium or by any other lawful means;

(g) representing the disinvestment proceeds received by the resident account-holder on conversion of shares held by him to ADRs / DGRs under the Sponsored ADR / GDR Scheme approved by the Foreign Investment Promotion Board of Government of India.''

(b) in the Schedule, in paragraph 2, after clause (iv), the following clause shall be added, namely :

"(V) representing the disinvestment proceeds received by the resident account-holder on conversion of shares held by him to ADRs / GDRs under the Sponsored ADR / GDR Scheme approved by the Foreign Investment Board of Government of India''.

Foot-note : The Principal Regulations were published in the Official Gazette vide No. G.S.R. 393(E) dated May 5, 2000 in Part II, Section 3, Sub-section (i) and subsequently amended vide No. G.S.R. 675(E) dated August 25, 2000, No. G.S.R 89(E) dated Februsuy 12, 2001, No. G.S.R 103(E) dated February 19, 2001, No. G.S.R 200(E) dated March 21, 2001, No. G.S.R. 5(E) dated January 2, 2002, No. G. S.R. 261(E) dated April 9, 2002, No. G. S.R 465(E) dated July 2, 2002, No. G.S.R 474(E) dated July 8, 2002, No. G.S.R. 755(E) dated November 8, 2002, No. G.S.R 756(E), No. G.S.R 224(E) dated March 18, 2003, No. G.S.R 398(E) dated May 14, 2003 and No. G.S.R 452(E) dated June 3, 2003.

(Above foot note has been added vide Ntf. No. G.S.R.712(E), Dt. 20/10/2004)

Sd/-
K J Udeshi
Executive Director

(Please refer Cir. No. 08/2003-04-RB, Dt. 16/08/2003)

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