Foreign Exchange Management (Transfer Or Issue Of Security By A Person Resident Outside India) (Seventh Amendment) Regulations, 2012 - Amendment In Regulation 5 And Schedule 1 - 244/2012-RB - Foreign Exchange Management

RESERVE BANK OF INDIA (Foreign Exchange Department) (CENTRAL OFFICE) NOTIFICATION Mumbai, the 25 th September, 2012 Foreign Exchange Management (Transfer Or Issue Of Security By A Person Resident Outside India) (Seventh Amendment) Regulations, 2012 - Amendment In Regulation 5 And Schedule 1 G.S.R. 946(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 Bank 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:- Short Title Commencement 1. (i) These Regulations may be called the Foreign Exchange Management (Transfer or Issue of Security by A Person Resident Outside India) (Sixth Amendment) Regulations, 2012. (ii) They shall be deemed to have come into force from the 1st day of August 2012. Amendment of Regulation 5 2. 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 ), in regulation 5, in sub-regulation (1), after clause (ii) , the following new clause (iii) shall be added, namely:- "(iii) Further, notwithstanding anything contained in clause (i) of the sub-regulation (1) above, a person who is a citizen of Pakistan or an entity incorporated in Pakistan may, with the prior approval of the Foreign Investment Promotion Board of the Government of India, purchase shares and convertible debentures of an Indian company under Foreign Direct Investment Scheme, subject to the terms and conditions specified in Schedule 1. Provided further that notwithstanding anything contained in Schedule 1, the Indian company, receiving such foreign direct investment, is not engaged or shall not engage in sectors/activities pertaining to defence, space and atomic energy and sectors/activities prohibited for foreign investment." Amendment to Schedule 1 3. 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 ), the existing sub-paragraph 1 of paragraph shall be substituted by the following, namely:- "1. (1) A person resident outside India referred to in clauses (i), (ii) and (iii) of sub-regulation (1) of Regulation 5 , may purchase shares or convertible debentures issued by an Indian company up to the extent and subject to the terms and conditions set out in this Schedule." [No. FEMA 244/2012-RB] RUDRA NARAYAN KAR, Chief General MAnager ____________ Notes:- 1. It is certified that no person will be adversely affected as a result of the retrospective effect being given to these regulations. These provisions have been notified by Department of Industrial Policy Promotion, Ministry of Commerce Industry, Government of India, vide Press Note No. 3 (2012 Series), dated August 1,2012 . 2. The Principal Regulations were published in the Official Gazette vide GSR No. 406(E), dated May, 8, 2000 in Part II, Section 3, sub-section (i) and subsequently amended as under:- GSR No. 158(E), dated 02.03.2001 GSR No. 175(E), dated 13.03.2001 GSR No. 182(E), dated 14.03.2001 GSR No. 04(E), dated 02.01.2002 GSR No. 574(E), dated 19.08.2002 GSR No. 223(E), dated 18.03.2003 GSR No. 225(E), dated 18.03.2003 GSR No. 558(E), dated 22.07.2003 GSR No. 835(E), dated 23.10.2003 GSR No. 899(E), dated 22.11.2003 GSR No. 12(E), dated 07.01.2004 GSR No. 278(E), dated 23.04.2004 GSR No. 454(E), dated 16.07.2004 GSR No. 625(E), Dated 21.09.2004 GSR No. 799(E), dated 08.12.2004 GSR No. 201(E), dated 01.04.2005 GSR No. 202(E), dated 01.04.2005 GSR No. 504(E), dated 25.07.2005 GSR No. 505(E), dated 25.07.2005 GSR No. 513(E), dated 29.07.2005 GSR No. 738(E), dated 22.12.2005 GSR No. 29(E), dated 19.01.2006 GSR No. 413(E), dated 11.07.2006 GSR No. 712(E), dated 14.11.2007 GSR No. 713(E), dated 14.11.2007 GSR No. 737(E), dated 29.11.2007 GSR No. 575(E), dated 05.08.2008 GSR No. 896(E), dated 30.12.2008 GSR No. 851(E), dated 01.12.2009 GSR No. 341(E), dated 21.04.2010 GSR No. 606(E), dated 03.08.2012 GSR No. 796(E), dated 30.10.2012 GSR No. 797(E), dated 30.10.2012 GSR No. 795(E), dated 30.10.2012