FEMA (Transfer or Issue of Any Foreign Security) (Amendment) Regulations, 2012 - Amendment in regulations 2 and 22 - 225/2012-RB - Foreign Exchange Management

FEMA (Transfer or Issue of Any Foreign Security) (Amendment) Regulations, 2012 - Amendment in regulations 2 and 22 NOTIFICATION NO. FEMA 225/2012-RB DATED 7-3-2012 G.S.R. 607(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 :- Short Title Commencement. 1. (iii) These Regulations may be called the Foreign Exchange Management (Transfer or Issue of Any Foreign Security) (Amendment) Regulations, 2012. (iv) Save as otherwise provided in these Regulations, the provisions of these Regulations shall be deemed to have come into force with effect from the 22nd day of July, 2009 @ . 2. Amendment. (a) (i) in regulation 2 , after clause (e), the following clauses shall be inserted, namely:- "(ea) 'Domestic Depository' shall have the same meaning as assigned to it in the Companies (Issue of Indian Depository Receipts) Rules, 2004. (eb) 'Eligible Company' means a Company eligible to issue Indian Depository Receipts under rule 4 of the Companies (Issue of Indian Depository Receipts) Rules, 2004 " (ii) in regulation 2 , after clause (j), the following clause shall be inserted, namely:- "(ja) 'Indian Depository Receipts' have the same meaning as assigned to it in the Companies (Issue of Indian Depository Receipts) Rules, 2004 " (b) in Regulation 22 , after sub-regulation (6), the following sub-regulation (7) shall be inserted, namely :- "(7) (i) A Domestic Depository may acquire, hold and transfer equity shares of eligible company resident outside India, being the underlying shares for the purpose of issuing IDRs as may be authorized by such company or its Overseas Custodian Bank. (ii) A person resident in India may redeem IDRs issued by an eligible company resident outside India through a Domestic Depository, subject to compliance of the following conditions with respect to the underlying shares on redemption : (a) Listed Indian companies may either sell or continue to hold the underlying shares subject to the terms and conditions as per Regulations 6B and 7 of the Notification No. FEMA.120/RB-2004 dated July 7, 2004 , as amended from time to time. (b) Indian Mutual Funds, registered with SEBI may either sell or continue to hold the underlying shares subject to the terms and conditions as per Regulation 6C of the Notification No. FEMA.120/RB-2004 dated July 7, 2004 , as amended from time to time. (c) Other persons resident in India including resident individuals may hold the underlying shares only for the purpose of sale within a period of 30 days from the date of conversion of the IDRs into underlying shares." __________________ @ It is clarified that no persons will be adversely affected as a result of retrospective effect being given to these Regulations.