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TMI BlogForeign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Eleventh Amendment) Regulations, 2015X X X X Extracts X X X X X X X X Extracts X X X X ..... 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:- 1. Short Title & Commencement:- (i) These Regulations may be called the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) (Eleventh Amendment) Regulations, 2015. (ii) They shall come into force from the date of publication in the Official Gazette. 2. Amendment to Regulations:- A. Amendment to Regulation 2 (i) After the existing sub-regulation (ii f) the following shall be added namely:- "(ii g) 'Investment Vehicle' shall mean an entity registered and regulated under relevant regulations framed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be substituted. Provided that the words "shares or convertible debentures or warrants of an Indian company or units of an Investment Vehicle" shall not be substituted in the qualification clause of Regulation 9(1) beginning with "Further" and ending with "subject to lock-in period requirement". D. Amendment to Regulation 12 In the principal Regulations, in Regulation 12, after the existing sub-regulation (v), the following shall be added, namely: "(vi) Any person who is a non-resident and holds units of an Investment Vehicle in accordance with these Regulations, may pledge such units to secure credit facilities being extended to the non-resident investor." E. Addition of a new Schedule After the existing Schedule 10, the following s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 'managers/investment managers' of the AIF are individuals, for the treatment of downstream investment by such AIF as domestic, 'sponsors' and 'managers/investment managers' should be resident Indian citizens. As ownership and control cannot be determined in LLP under the extant FDI policy, a LLP shall not act as sponsor or manager/investment manager. Explanation 2: The extent of foreign investment in the corpus of the Investment Vehicle will not be a factor to determine as to whether downstream investment of the Investment Vehicle concerned is foreign investment or not. 5. Downstream investment by an Investment Vehicle that is reckoned as foreign investment shall have to conform to the sectoral caps and conditions / restrictions, if any ..... X X X X Extracts X X X X X X X X Extracts X X X X
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