Foreign Exchange Management (Transfer or Issue of any Foreign Security) (Amendment) Regulations, 2013

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..... of Any Foreign Security) Regulations, 2004 (Notification No. FEMA 120-RB-2004 dated July 7, 2004), as amended from time to time, (hereinafter called the Principal Regulations or the Notification) namely:- 1. Short Title & Commencement:- (i) These Regulations shall be, called the Foreign Exchange Management (Transfer or Issue of Any Foreign Security) (Amendment) Regulations, 2013. (ii) They shall come into force from the date of publication in Official Gazette 2. Insertion of New Regulation 20A In Part II, after Regulation 20, the following Regulation shall be inserted: "20A. Acquisition or Setting up of a JV or WOS abroad by resident individual A resident individual (single or in association with another resident individual or wi .....

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..... the resident individual under Liberalised Remittance Scheme as prescribed by the Reserve Bank from time to time. [Explanation: The investment made out of the balances held in EEFC / RFC account shall also be restricted to the limit prescribed under LRS.] 6. The JV or WOS, to be acquired / set up by a resident individual under this Schedule, shall be an operating entity only and no step down subsidiary is allowed to be acquired or set up by the JV or WOS. 7. For the purpose of making investment under this Schedule, the valuation shall be as per Regulation 6(6)(a) of this Notification. 8. The financial commitment by a resident individual to / on behalf of the JV or WOS, other than the overseas direct investments as defined under Regula .....

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..... mittance. 3. The obligations as required in terms of Regulation 15 of this Notification shall also apply to the resident individuals who have set up or acquired a JV or WOS under the provisions of this Schedule. 4. The disinvestment by the resident individual may be reported by the designated AD to the Reserve Bank in Form ODI Part IV within 30 days of receipt of disinvestment proceeds." [No. FEMA 263/RB-2013] RASHMI FAUZDAR, Chief General Manager Foot Note: The Principal Regulations were published in the Official Gazette of GOI vide G.S.R. No 757 (E) dated November 19, 2004 - in Part II, Section 3, Sub-section (i) and subsequently amended vide :- G.S.R. No.220 (E) dated April 7, 2005, G.S.R. No.337 (E) dated May 27, 2005, G. .....

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