FEMA (Foreign Exchange Derivative Contracts) (Amendment) Regulations, 2012 - Amendment in Schedule II - 226/2012-RB - Foreign Exchange Management

FEMA (Foreign Exchange Derivative Contracts) (Amendment) Regulations, 2012 - Amendment in Schedule II NOTIFICATION NO. FEMA 226/2012-RB] DATED 16-3-2012 G.S.R. 608(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 of India 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 :- 1. Short Title and Commencement (i) These regulations may be called the Foreign Exchange Management (Foreign Exchange Derivative Contracts) (Amendment) Regulations, 2012. (ii) They shall be deemed to have come in to force with effect from the dates specified in these regulations @ . 2. Amendment of Schedules - In the Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000 (Notification No. FEMA 25/RB-2000, dated May 3, 2000), in Schedule II, (i) after paragraph '1', the following new paragraph shall be inserted and the same shall be deemed to have come into force with effect from the 20th day of May 2011:- "1A. A registered FII may enter into foreign currency - rupee swaps for hedging the transient capital flows relating to the Initial Public Offers (IPO) under the Application Supported by Blocked Amount (ASBA) mechanism, subject to such terms and conditions as may be stipulated by the Reserve Bank from time to time." (ii) after paragraph '4', the following new paragraph shall be inserted and the same shall be deemed to have come into force with effect from the 21st day of July 2011:- "5. A non-resident importer/exporter may enter in to a forward contract with rupee as one of the currencies or a foreign currency - rupee option contract with an Authorised Dealer in India to hedge the currency risk in respect of exports from and imports to India, invoiced in Indian Rupees, subject to such terms and conditions as may be stipulated by the Reserve Bank from time to time." ______________ @ It is clarified that no person will be adversely affected on a result of retrospective effect being given to these regulations.