9911796707
TMI BlogForeign Exchange Management (Transfer or Issue of Any Foreign Security) (Amendment) Regulations, 2007X X X X Extracts X X X X X X X X Extracts X X X X ..... ication No. FEMA 120/RB-2004 dated July 7, 2004 ) namely : 1. Short Title Commencement ( i ) These Regulations shall be called the Foreign Exchange Management (Transfer or Issue of Any Foreign Security) (Amendment) Regulations, 1 2008. ( ii ) These Regulations shall be deemed to have come into effect from the dates specified in these Regulations. 2. Amendment of Regulation 2 In the Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004 ( Notification No. FEMA. 120/RB-2004 dated July 7, 2004 , hereinafter referred to as the principal Regulations), ( i ) In Regulation 2, in clause ( f ) , for the words and figures "50 per cent of the amount of guarantees", the words and figures "10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... financial commitment' within the limit of 200% or 300% of the net worth, as the case may be" ( iii ) in sub-regulation (2), in clause ( i ), in sub-clause (c), for the words "fifty per cent of the value of guarantees", the words "hundred per cent of the value of guarantees" shall be substituted and shall be deemed to have been substituted with effect from the 14th day of June, 2007. ( iv ) in sub-regulation (3), in clause ( ii ), for the words and figures "shall not exceed 100% of the net worth", the words and figures "shall not exceed 200% of the net worth" shall be substituted and shall be deemed to have been substituted with effect from the 12 th day of May, 2005. ( v ) in sub-regulation (3) in clause ( ii ) as amended by clause ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fect from the 27 th day of March, 2006, namely : "Explanation:- an Indian Party may offer to a person resident outside India any form of guarantees, that is, corporate or personal / primary or collateral / guarantee by promoter company in India / guarantee by group company, sister concern or associate company in India, provided that : a) total 'financial commitment' including all forms of guarantees remains within the overall ceiling stipulated for overseas investment by an Indian Party and b) no guarantee is 'open ended'." ( x ) in sub-regulation (3), in clause ( ii ), in the Explanation, after the sub-clause (e), the following new sub-clause shall be inserted and shall be deemed to have been inserted with effect from th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tock exchange; ( ii ) in cases where the Indian promoter company is listed on a stock exchange in India and has a net worth of not less than Rs. 100 crore; ( iii ) where the Indian promoter is an unlisted company and the investment in overseas venture does not exceed USD 10 million". 7. Amendment of Regulation 18 In the principal Regulations, in Regulation 18 , after the words, "from an authorised dealer or a public financial institution in India" the following shall be inserted and shall be deemed to have been inserted with effect from the 20 th day of April, 2007, namely :- "or to an overseas lender, provided the lender is regulated and supervised as a bank and the total financial commitment of the Indian Party remains wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d i.e. export outstanding does not exceed 10 per cent of the average export realisation of the preceding three years. ( iv ) The exporter has not come under the adverse notice of any Government agency like Directorate of Enforcement, Central Bureau of Investigation and does not appear in the exporters' caution list of the Reserve Bank or in the list of defaulters to the banking system in India. ( v ) The amount of investment outside India does not exceed 10 per cent of the average of three years export realisation or 200 per cent of the net owned funds of the firm, whichever is lower." 10. Amendment of Regulation 22 In the principal Regulations, in Regulation 22 , ( i ) for sub-regulation (2), the following shall be substitu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le, the shares acquired in terms of sub-regulations (2) and (3) above. Provided that the proceeds thereof are repatriated immediately on receipt thereof and in any case not later than 90 days from the date of sale of such securities". ( iii ) after sub-regulation (4), the following new sub-regulations shall be inserted and shall be deemed to have been inserted with effect from the 5 th day of April, 2006, namely :- "(5) A foreign company, who has issued the shares in terms of sub-regulation (2) of this Regulation may repurchase the same provided that ( i ) the shares were issued in accordance with the Rules / Regulations framed under Foreign Exchange Management Act, 1999, ( ii ) the shares are being repurchased in terms of the in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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