Foreign Exchange Management (Foreign Exchange Derivative Contracts) (Amendment) Regulations, 2016 - 378/RB-2016 - Foreign Exchange Management

RESERVE BANK OF INDIA (Financial Markets Regulatory Department ) (Central Office) NOTIFICATION No. FEMA. 378/RB-2016 Mumbai, the 25th October, 2016 Foreign Exchange Management (Foreign Exchange Derivative Contracts) (Amendment) Regulations, 2016 G.S.R. 1005 (E) . -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 hereby 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, 2016. (ii) They shall be deemed to have come into force with effect from the date of their publication in the Official Gazette. 2. Amendment of Regulation 5B : In the Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000 ( Notification No. FEMA 25/RB-2000 dated May 3, 2000 ), under the principal regulations, for the existing Regulation 5B, the following shall be substituted namely: 5B Permission to a person resident outside India to enter into exchange traded currency derivatives A person resident outside India who is exposed to Rupee currency risk arising out of: (i) a permitted current account transaction or (ii) a Rupee denominated asset held by him or a Rupee denominated liability incurred by him, as permitted under FEMA, 1999, may transact currency derivatives contracts on a stock exchange recognised under section 4 of Securities Contracts (Regulations) Act, 1956 to hedge such exposure, 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. [F. No. 1/15/EM/2015] T RABI SANKAR, Chief General Manager