Foreign Exchange Management (Permissible Capital Account Transactions)(Amendment) Regulations, 2019 - FEMA 391/2019-RB - G.S.R. 162(E) - Foreign Exchange Management

RESERVE BANK OF INDIA (Financial Markets Regulations Department) (CENTRAL OFFICE) NOTIFICATION Mumbai, the 26th February, 2019 Foreign Exchange Management (Permissible Capital Account Transactions)(Amendment) Regulations, 2019 G.S.R. 162(E).- In exercise of the powers conferred by clause (a) of sub-section (2) of Section 6 and clause (a) of sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999) and in partial modification of its Notification No. FEMA 1/2000-RB dated May 03, 2000 , the Reserve Bank makes the following amendment in the Foreign Exchange Management (Permissible Capital Account Transactions ) Regulations, 2000, as amended from time to time, namely :- 2. Short title and commencement: - (i) These Regulations may be called the Foreign Exchange Management (Permissible Capital Account Transactions) (Amendment) Regulations, 2019. (ii) They shall come into force with effect from the date of their publication in the Official Gazette. 3. Amendments of the regulations: - (i) After the clause (d) of Para 2 (Definitions) the following shall be added: (da) Derivative means a financial contract, to be settled at a future date, whose value is derived from one or more financial, or non-financial variables. (ii) In Schedule I (Classes of capital account transactions of persons resident in India) of Foreign Exchange Management (Permissible Capital Account Transactions) Regulations, 2000, for the existing clause (k), the following shall be substituted, namely; (k) Undertake derivative contracts (iii) In the Schedule II (Classes of capital account transactions of persons resident outside India) of Foreign Exchange Management (Permissible Capital Account Transactions) Regulations, 2000, after existing clause (g) the following shall be added, namely; (h) Undertake derivative contracts [No. FEMA 391/2019-RB] T. RABI SANKAR, Chief General Manager