Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) (Amendment) Regulations, 2013 - 275/2013 - Foreign Exchange Management

Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) (Amendment) Regulations, 2013 NOTIFICATION NO. FEMA 275/2013-RB DATED 8-5-2013 GSR 385(E) - 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) , Reserve Bank of India makes the following amendments to the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2000 ( Notification No. FEMA 10/2000-RB dated May 03, 2000 ), as amended from time to time, namely: 1. Short Title and Commencement: (i) These Regulations may be called the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) (Amendment) Regulations, 2013. (ii) They shall come into force from April 02, 2012. Amendment of the Regulations 2. In the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2000 , in Regulation 7 , after sub-regulation (8), the following sub-regulation shall be added, namely: "(9) An Indian party may open, hold and maintain Foreign Currency Account (FCA) abroad for the purpose of overseas direct investments subject to the following terms and conditions: (i) The Indian party is eligible for overseas direct investments in terms of Regulation 6 or Regulation 7 , as the case may be, of Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004 (notified in Notification No. FEMA 120/RB-2004 dated July 7, 2004 ) as amended from time to time. (ii) The host country regulations stipulate that the investment into the country is required to be routed through a designated account. (iii) FCA shall be opened, held and maintained as per the regulation of the host country. (iv) The remittances sent to the FCA by the Indian party should be utilized only for making overseas direct investment into the JV/WOS abroad. (v) Any amount received in the account by way of dividend and/or other entitlements from the subsidiary shall be repatriated to India within 30 days from the date of credit. (vi) The Indian party should submit the details of debits and credits in the FCA on yearly basis to the designated AD bank with a certificate from the Statutory Auditors of the Indian party certifying that the FCA was maintained as per the host country laws and the extant FEMA regulations/provisions as applicable. (vii) The FCA so opened shall be closed immediately or within 30 days from the date of disinvestment from JV/WOS or cessation thereof. Explanation: For the purpose of this regulation, the expression 'Indian party' shall have the same meaning as assigned to it in Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004. "