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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 ..... ed 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, 12008. (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 "100 per cent of the amount of guarantees" shall be substituted a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 12th day of May, 2005. (v) in sub-regulation (3) in clause (ii) as amended by clause (iv) above, for the words "shall not exceed 200% of the net worth", the words and figures "shall not exceed 300% of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at 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 the 7th day of July, 2004 namely:- "(f) Swap of shares". (xi) in sub-regulation (3), in clause (ii), in the Explanation, after sub-clause (f), as inserted by clause (x) ab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as 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 20th 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 within the limit stipulated by the Reserve Bank for overseas investments in JV/WOS". 8. Insertion of new Regulation in Part II In the principal Regulations, in Part II, after Regulation 19, the following Regulation shall be inserted and shall be deemed to h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rters' 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 substituted and shall be deemed to have been substituted with effect from the 5th day of April, 2006, namely :-- "(2) A person resident in India, being an individual, who is an employee or a director of Indian office or branch of a foreign company or of a subsidiary in India of a foreign company or of an Indian company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eemed to have been inserted with effect from the 5th 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 initial offer document and, (iii) An Annual Return is submitted through the Authorised Dealer bank giving details of remittances / beneficiaries etc. (6). An Authorised Dealer bank may allow the remittance by the person eligible to purchase the shares in terms of sub-regulation (2)." 11. Amendment of Regulation 26 In the principal Regulations, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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