Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) (Sixth Amendment) Regulations, 2014 - 305/2014-RB - Foreign Exchange Management

Reserve Bank of India Foreign Exchange Department Central Office Mumbai- 400 001 Notification No. FEMA.305/2014-RB Dated May 22, 2014 Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) (Sixth Amendment) Regulations, 2014 G.S.R. No.370(E) - In exercise of the powers conferred by clause (b) of sub-section (3) of Section 6 and Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999) , the Reserve Bank of India hereby makes the following amendment in the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 ( Notification No. FEMA. 20 / 2000-RB dated 3rd May 2000 , amended from time to time), namely:- 1. Short Title Commencement:- (i) These Regulations may be called the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (sixth Amendment) Regulations, 2014. (ii) The provisions of these Regulations shall come into force from the date of the publication of this notification in the Official Gazette. 2. Amendment to Regulation 12 In Regulation 12, after sub-regulation (iv) , the following shall be inserted, namely: (v) Any person being a non-resident investor of a company registered in India and listed on a recognised stock exchange/s in India (resident investee company), may pledge the shares of that company, in favour of a Non-Banking Financial Company in India, to secure the credit facilities being extended to that resident investee company for bonafide business purposes, subject to the AD bank satisfying itself of the compliance of the conditions stipulated by the Reserve Bank, from time to time, in this regard. (C.D.Srinivasan) Chief General Manager