Foreign Exchange Management (Borrowing and Lending in Rupees) (Amendment) Regulations, 2009 - 183/2009-RB - Foreign Exchange Management

Foreign Exchange Management (Borrowing and Lending in Rupees) (Amendment) Regulations, 2009 MINISTRY OF FINANCE (Department of Economic Affairs) RESERVE BANK OF INDIA (Foreign Exchange Department) (CENTRAL OFFICE) NOTIFICATION No. FEMA. 183/2009-RB Mumbai, the 20th January, 2009 Foreign Exchange Management (Borrowing and Lending in Rupees) (Amendment) Regulations, 2009 G.S.R. 107(E). - In exercise of the powers conferred by clause (e) of sub-section (3) of Section 6 and sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank of India makes the following amendments in the Foreign Exchange Management (Borrowing and Lending in Rupees) Regulations, 2000 (Notification No. FEMA. 4/2000-RB dated 3rd May, 2000) as amended from time to time, namely:- 1. Short Title and Commencement: (1) These Regulations may be called the Foreign Exchange Management (Borrowing and Lending in Rupees) (Amendment) Regulations, 2009. (ii) They shall come into force from the date specified in these Regulations. 2. Amendment of the Regulations: In the Foreign Exchange Management (Borrowing and Lending in Rupees) Regulations, 2000 (Notification No. FEMA. 4/2000-RB dated 3rd May, 2000) , in Regulation 5, after sub-regulation (3) the following new sub-regulation (4) shall be inserted, namely,- "(4) The borrowing by way of issue of preference shares on or after 30th day of April, 2007 other than those which are fully and mandatorily convertible into equity within a specified time and issue of convertible debentures on or after 7th day of June, 2007, other than those which are fully and mandatorily convertible into equity within a specified time, to a person resident outside India, shall be considered as debt and shall accordingly conform to Regulation 6 of the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000 (Notification No. FEMA. 3/2000-RB dated 3rd May, 2000) including the limits to such Borrowings as specified in the said regulations." [F.No. 1/23/EM/2000-Vol-IV] SALEM GANGADHARAN, Chief Manager-in-Charge Foot Note :— The Principal Regulations were published in the Official Gazette vide No. G.S.R. 387(E) dated 5th May, 2000 in Part II Section 3, Sub-section (i) and subsequently amended as under :— 1. No. G.S.R. 90(E), dated 12-2-2002 2. No. G.S.R. 754(E) dated 8-11-2002 3. No. G.S.R. 351(E),dated 8-6-2004 4. No. G.S.R. 453(E),dated 16-7-2004 5. No. G.S.R. 711(E) dated 14-l 1-2007