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NTF. NO. FEMA 210/2010-RB, DT. 19/07/2010

FEM (Foreign Exchange Derivative Contracts) (Amendment) Regulations, 2010

In exercise of the powers conferred by clause (h) of sub-section (2) of section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999, the Reserve Bank of India makes the following amendments in the Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000, (Notification No. FEMA 25/RB-2000 dated May 3, 2000) namely:-

1. Short Title and Commencement

(i) These Regulations may be called the Foreign Exchange Management (Foreign Exchange Derivative Contracts) (Amendment) Regulations, 2010.

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

2. Amendment of the Regulations

In the Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000 ( Notification No. FEMA 25/RB-2000 dated May 3, 2000), for Regulation 5A, the following shall be substituted, namely:--

“5A. Permission to a person resident in India to enter into currency futures or currency options

A person resident in India may enter into currency futures or currency options on a stock exchange recognized under section 4 of the Securities Contract (Regulation) Act, 1956, to hedge an exposure to risk or otherwise, subject to such terms and conditions as may be set forth in the directions issued by the Reserve Bank of India from time to time.”

(Salim Gangadharan)
Chief General Manager-in-Charge


Footnote:-

1. The principal regulations were published in the Official Gazette vide GSR No.411(E) dated May 8, 2000 in Part II, Section 3, sub-section (i) and subsequently amended vide -

    GSR No. 756(E) dt. 28.9.2000,
    GSR No.264(E) dt. 09.4.2002,
    GSR No.579(E) dt. 19.8.2002,
    GSR No.222(E) dt. 18.3.2003,
    GSR No.532(E) dt. 09.7.2003,
    GSR No.880(E) dt. 11.11.2003,
    GSR No. 881(E) dt. 11.11.2003,
    GSR No. 750(E) dt. 28.12.2005,
    GSR No.222(E) dt. 19.4.2006,
    GSR No. 223(E) dt. 19.4.2006,
    GSR No. 760(E) dt. 07.12.2007,
    GSR.No.577(E) dt. 05.08.2008,
    GSR No. 440(E) dt. 23.06.2009 and
    GSR.No. 895(E) dt. 14.12.2009
Published in the Official Gazette of Government of India-Extraordinary-Part-II, Section 3, Sub-Section (i) dated 27.07.2010- G.S.R.No.635 (E)

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