Notification No.FEMA.90/2003-RB
Dated May 23, 2003

Foreign Exchange Management (Foreign Currency Account by
a Person Resident in India)(Third Amendment) Regulations, 2003

In exercise of the powers conferred by clause (b) of Section 9 and clause (e) of sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999) and in partial modification of its Notification No.FEMA 10/2000-RB dated May 3, 2000, as amended from time to time, the Reserve Bank of India makes the following amendments in the Foreign Exchange Management (Foreign Currency Account by a Person Resident in India) Regulations 2000 namely:

1. Short title and commencement

(a) These Regulations may be called the Foreign Exchange Management (Foreign Currency Account by a Person Resident in India) (Third Amendment) Regulations, 2003.

(b) They shall come into force on their publication in the Official Gazette.

2. Amendment of the Regulation

In the Foreign Exchange Management (Foreign Currency Account by a Person Resident in India) Regulations 2000,

a) in Regulation 5A, in sub-regulation (1), after clause (d), the following clauses shall be added, namely : -

"(e) as gift from a close relative;

Explanation : For the purpose of this clause, "close relative" means relatives as defined in Section 6 of the Companies Act, 1956.

(f) by way of earning through export of goods/services, or as royalty, honorarium or by any other lawful means;

(g) representing the disinvestment proceeds received by the resident accountholder on conversion of shares held by him to ADRs/GDRs under the Sponsored ADR/GDR Scheme approved by the Foreign Investment Promotion Board of Government of India."

b) in the Schedule, in paragraph 2, after clause (iv), the following clause shall be added, namely : -

"(v) representing the disinvestment proceeds received by the resident accountholder on conversion of shares held by him to ADRs/GDRs under the Sponsored ADR/GDR Scheme approved by the Foreign Investment Promotion Board of Government of India."

G.S.R.453(E)

K.J. Udeshi
Executive Director