Foreign Exchange Management (Foreign Exchange Derivative Contracts) (Amendment) Regulations, 2019 - FEMA 390/2019-RB - G.S.R. 161(E) - Foreign Exchange Management

RESERVE BANK OF INDIA (Financial Markets Regulations Department) (CENTRAL OFFICE) NOTIFICATION Mumbai, the 26th February, 2019 Foreign Exchange Management (Foreign Exchange Derivative Contracts) (Amendment) Regulations, 2019 G.S.R. 161(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 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: 2. Short title commencement: i. These Regulations may be called the Foreign Exchange Management (Foreign Exchange Derivative Contracts) (Amendment) Regulations, 2019. ii. These regulations shall come into force from the date of their publication in the Official Gazette. 3. Amendments a. The following may be added at the end of Schedule II as para 7: A Foreign Portfolio Investor may enter into forward contracts, foreign currency-rupee option contract, cost reduction structures or swaps with Rupee as one of the currencies with an Authorised Dealer in India to hedge the currency risk in respect of investments made under the Voluntary Retention Route (VRR) facility subject to such terms and conditions as may be stipulated by the Reserve Bank from time to time. [No. FEMA 390/2019-RB] T. RABI SHANKAR, Chief General Manager