Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) (Second Amendment) Regulations, 2007 - 167/2007 - Foreign Exchange Management

Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) (Second Amendment) Regulations, 2007 NOTIFICATION NO. G.S.R. 713(E) [FEMA 167/2007-RB], DATED 23-10-2007 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 and Commencement. 1. ( i ) These Regulations may be called the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) (Second Amendment) Regulations, 2007. ( ii ) This would come into effect from the date of its publication in the Official Gazette. Amendment to the Regulations. 2. 1. 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 , sub-regulation (1), shall be re-numbered as clause ( i ) of sub-regulation (1) thereof and after clause ( i ) so re-numbered, the following clause shall be inserted, namely :— "( ii ) Notwithstanding anything contained in sub-regulation ( i ) above, a person who is a citizen of Bangladesh or an entity incorporated in Bangladesh 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." 2. In Schedule 1 , para 1(1) shall be substituted by the following: "A person resident outside India referred to in clauses ( i ) and ( ii ) 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." [F. No. 1/23/EM/2000 Vol. IV].