Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India)(Amendment) Regulations, 2010 - 205/2010-RB - Foreign Exchange Management

Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India )(Amendment) Regulations, 2010 MINISTRY OF FINANCE (Department of Economic Affairs) RESERVE BANK OF INDIA (Foreign Exchange Department) NOTIFICATION No. FEMA 205/2010-RB Mumbai, the 7th April, 2010 G.S.R. 341(E).- In exercise of the powers conferred by clause (b) of sub-section (3) of Section 6 and Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999) , the Reserve Rank of India hereby makes the following amendments in the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 ( Notification No. FEMA 20/2000-RB dated 3rd May, 2000 ), namely:- 1. Short Title and Commencement:- (i) These Regulations may be called the Foreign Exchange Management ( Transfer or Issue of Security by a Person Resident Outside India) (Amendment) Regulations, 2010 . (ii) They shall come into force from the date of their publication in the Official Gazette. 2. Amendment of Regulation In the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations 2000 , ( Notification No, FEMA 20/2000-RB dated 3rd May, 2000 ), (hereafter referred to as " the principal regulations ") (i) In Regulation 6, in sub-regulation (2), for clause (iv) , the following shall be substituted, namely:- "(iv) The offer on right basis to the persons resident outside India shall be: (a) in the case of shares of a company listed on a recognized stock exchange in India, at a price as determined by the company; (b) in the case of shares of a company not listed on a recognized stock exchange in India, at a price which is not less than the price at which the offer on right basis is made to resident shareholders." (ii) In Schedule I, for paragraph 5, the following paragraph shall be substituted, namely:- "5. Issue price Price of shares issued to persons resident outside India under this Schedule, shall not be less than- (a) the price worked out in accordance with the SEBI guidelines, as applicable, where the shares of the company is listed on any recognised stock exchange in India; (b) the fair valuation of shares done by a SEBI registered Category-I Merchant Banker or a Chartered Accountant as per the discounted free cash flow method, where the shares of the company is not listed on any recognised stock exchange in India; and (c) the price as applicable to transfer of shares from resident to non-resident as per the pricing guidelines laid down by the Reserve Bank from time to time, where the issue of shares is on preferential allotment" [F. No. 1/23/EM/2000-Vol. IV (Part File)] SALIM GANGADHARAN, Chief General Manager-in-Charge Foot Note: The Principal Regulations were published in the Official Gazette vide No. G.S.R. 406(E) dated May 8, 2000 in Part II, Section 3, Sub-section (i) and subsequently amended as under: No. G.S.R. 158(E) dated 2-3-2001 No. G.S.R. 175(E) dated 13-3-2001 No. G.S.R. 182(E) dated 14-3-2001 No. G.S.R. 4(E) dated 02-1-2002 No. G.S.R. 574(E) dated 19-8-2002 No. G.S.R. 223(E) dated 18-3-2003 No. G.S.R. 225(E) dated 18-3-2003 No. G.S.R. 558(E) dated 22-7-2003 No. G.S.R. 835(E) dated23-10-2003 No. G.S.R. 899(E) dated 22-11-2003 No. G.S.R. 12(E) dated 7-1-2004 No. G.S.R. 278(E) dated 23-4-2004 No. G.S.R. 454(E) dated 16-7-2004 No. G.S.R. 625(E) dated 21-09-2004 No. G.S.R. 799(E) dated 8-12-2004 No. G.S.R. 201(E) dated 1-4-2005 No. G.S.R. 202(E) dated 1-4-2005 No. G.S.R. 504(E) dated 25-7-2005 No. G.S.R. 505(E) dated 25-7-2005 No. G.S.R. 513(E) dated 29-7-2005 No. G.S.R. 738(E) dated 22-12-2005 No. G.S.R. 29(E) dated 19-1-2006 No. G.S.R. 4l3(E) dated 11-7-2006 No. G.S.R. 712(E) dated 14-11-2007 Na G.S.R. 713(E) dated 14-11-2007 No. G.S.R. 737(E) dated 29-11-2007 No. G.S.R. 575(E) dated 5-8-2008 No. G.S.R. 896(E) dated 30-12-2008 No. G.S.R. 851 (E) dated 1-12-2009