Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) (Amendment) Regulations, 2007 - 166/2007 - Foreign Exchange Management

Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) (Amendment) Regulations, 2007 NOTIFICATION NO. G.S.R. 712(E) [FEMA 166/2007-RB], DATED 17-10-2007 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) (Amendment) Regulations, 2007. ( ii ) These amendments come into force from the date of publication in the Gazette. Amendment to the Regulations. 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 ). ( i ) In Regulation 2, after sub-regulation [ iii (a)] , the following sub-regulation shall be inserted, namely :— "[ iii ] (b) "Foreign Central Bank" means an institution/organization/body corporate established in a country outside India and entrusted with the responsibility of carrying out central bank functions under the law for the time being in force in that country." ( ii ) In Regulation 5, for sub-regulation (4) the following sub-regulation shall be substituted, namely :— "(4) A non-resident Indian or a registered FII or a Foreign Central Bank may purchase securities, other than shares or convertible debentures of an Indian company, subject to the terms and conditions specified in Schedule 5." ( iii ) In Schedule 5, after paragraph 2 , the following new paragraph shall be inserted, namely:— "2A. Permission to Foreign Central Banks for purchase of Government Securities— A Foreign Central Bank may purchase and sell dated Government securities/treasury bills in the secondary market - subject to the conditions as may be stipulated by the Reserve Bank from time to time". [F. No. 1/23/EM/2000 Vol. IV]