Foreign Exchange Management (Transfer or Issue of Any Foreign Security) (Fourth Amendment) Regulations, 2009 - 196/2009-RB - Foreign Exchange Management

Foreign Exchange Management (Transfer or Issue of Any Foreign Security) (Fourth Amendment) Regulations, 2009 MINISTRY OF FINANCE (Department of Economic Affairs) (EM Section) (RESERVE BANK OF INDIA ) (Foreign Exchange Department) NOTIFICATION Mumbai, the 28th July, 2009 No. FEMA 196/2009-RB Foreign Exchange Management (Transfer or Issue of Any Foreign Security) (Fourth Amendment) Regulations, 2009 G.S.R. 609(E). - In exercise of the powers conferred by clause (a) 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 amendments in the Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004 (Notification No. FEMA. 120/RB-2004 dated July 7, 2004), namely :- I. Short title and Commencement :- (i) These Regulations shall be called the Foreign Exchange Management (Transfer or Issue of Any Foreign Security) (Fourth Amendment) Regulations, 2009. (ii) These Regulations shall be deemed to have come into effect from the 6th day of September, 2006. 2. Amendment of Regulation 7 - In the principal Regulations, in Regulation 7, for the sub-regulation (1), the following shall be substituted, namely: "(1) Subject to the Regulations in Part I, an Indian Party engaged in financial services sector in India may make investment in an entity outside India: Provided that the Indian party (i) has earned net profit during the preceding three financial years from the financial services activities; (ii) is registered with the regulatory authority in India for conducting the financial services activities; (iii) has obtained approval from the concerned regulatory authorities both in India and abroad, for venturing into such financial sector activity; (iv) has fulfilled the prudential norms relating to capital adequacy as prescribed by the concerned regulatory authority in India." [F. No. 1/23/EM/2000-Vol. IV] SALIM GANGADHARAN, Chief General Manager-in-Charge Foot Note: (i) The Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004 were published in the Official Gazette vide No. G.S.R. 757 (E), dated November 19, 2004 and subsequently amended vide No. G.S.R. 220 (E), dated April 7, 2005 and vide, G.S.R. 337 (E), dated May 27, 2005, G.S.R. 552 (E), dated August 31, 2005, G.S.R. 535 (E), dated September 6, 2006, G.S.R. 13 (E), dated January 5, 2008, G.S.R. 209 (E), dated March 25, 2008, G.S.R. 676 (E), dated September 24, 2008, G.S.R. 756 (E), dated October 31, 2008, G.S.R. 108 (E), dated February 20, 2009 G.S.R. 301(E), dated May 1, 2009 G.S.R. 441 (E), dated June 23, 2009