FEMA (FOREIGN EXCHANGE DERIVATIVE CONTRACTS) (SECOND AMENDMENT) REGULATIONS, 2012 - AMENDMENT IN SCHEDULE I - 240/2012-RB - Foreign Exchange Management

RESERVE BANK OF INDIA (Foreign Exchange Department) (Central Office) NOTIFICATION Mumbai, the 25 th September, 2012 FEMA (FOREIGN EXCHANGE DERIVATIVE CONTRACTS) (SECOND AMENDMENT) REGULATIONS, 2012 - AMENDMENT IN SCHEDULE I NOTIFICATION NO. FEMA 240/2012-RB Dated 25-9-2012 GSR 799(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 hereby makes the following amendments in the Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000 ( Notification No. FEMA 25/2000-RB, dated 3rd May, 2000 ) namely:- 1. Short Title and Commencement ( i ) These Regulations may be called the Foreign Exchange Management (Foreign Exchange Derivative Contracts) (Second Amendment) Regulations, 2012. ( ii ) They shall be deemed to have come into force with effect from dates specified in these regulations. 2. Amendment of Schedules In the Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000 ( Notification No. FEMA 25/2000-RB, dated 3rd May 2000 ), ( i ) In sub-paragraph 1( f ) of the paragraph 'A' in Schedule I , after the words "in case of Global Depository Receipts (GDRs)" the words "American Depository Receipts (ADRs)" shall be inserted and shall be deemed to have been inserted with effect from May 3, 2000. ( ii ) In sub-paragraph 3(1) of the paragraph 'B' in Schedule I , the words "Provided that in the respect of cost effective risk reduction strategies like range forwards, ratio-range forwards or any other variable by whatever name called there shall not be any net inflow of premium" shall be omitted and shall be deemed to have been omitted with effect from the 1st day of February, 2011. ( iii ) After sub-paragraph 3(3) of the paragraph 'B' in Schedule I, the following new sub-paragraph shall be added and the same shall be deemed to be inserted with effect from the 1st day of February 2011, namely :- "(4) A person resident in India may enter into cross-currency option cost reduction structures (not involving the rupee as one of the currencies) and foreign currency-rupee option cost reduction structures with an authorised dealer to hedge an exposure to exchange risk arising out of trade transactions or external commercial borrowings subject to such terms and conditions as may be stipulated by the Reserve Bank from time to time." [No. FEMA-240/2012-RB] RUDRA NARAYAN KAR, Chief General Manager Footnote:- 1. @ It is clarified that no person will be adversely affected as a result of retrospective effect being given to those regulations. 2. The Principal Regulations were published in the Official Gazette vide G.S.R. No. 411(E), Dated May, 8, 2000 in Part II, Section 3, Sub-section (i) and Subsequently amended vide- GSR No. 756(E), dated 28.09.2000 GSR No. 264(E), dated 09/04/2002 GSR No. 579(E), dated 19.08.2002 GSR No. 222(E), dated 18.03.2003 GSR 532(E), dated 09.07.2003 GSR 880(E), dated 11.11.2003 GSR 881(E), dated 11.11.2003 GSR 750(E), dated 28.12.2005 GSR 222(E), dated 19.04.2006 GSR 223(E), dated 19.04.2006 GSR 760(E), dated 07.12.2007 GSR 577(E), dated 05.08.2008 GSR 440(E), dated 23.06.2009 GSR 895(E), dated 14.12.2009 GSR 635(E), dated 27.07.2010 GSR 608(E), dated 16.03.2012 and