RESERVE BANK OF INDIA
FOREIGN EXCHANGE DEPARTMENT
CENTRAL OFFICE
MUMBAI
Notification No. FEMA. 226/2012-RB
dated March 16, 2012
Foreign Exchange Management (Foreign Exchange
Derivative Contracts) (Amendment) Regulations, 2012
In exercise of the powers conferred by clause (h) of sub-section 2 of Section
47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank
of India hereby makes the following amendments in the Foreign Exchange
Management (Foreign Exchange Derivative Contracts) Regulations, 2000,
(Notification No. FEMA 25/RB-2000 dated May 3, 2000) namely:-
1. Short Title and Commencement
(i) These Regulations may be called the Foreign Exchange Management (Foreign
Exchange Derivative Contracts) (Amendment) Regulations, 2012.
(ii) They shall be deemed to have come in to force with effect from the dates
specified in these regulations. @
2. Amendment of Schedules - In the Foreign Exchange Management (Foreign Exchange
Derivative Contracts) Regulations, 2000 (Notification No. FEMA 25/RB-2000 dated
May 3, 2000), in Schedule II,
(i) after paragraph '1', the following new paragraph shall be inserted and the
same shall be deemed to have come into force with effect from the 20th day of
May 2011 :-
"1A. A registered FII may enter into foreign currency – rupee swaps for hedging
the transient capital flows relating to the Initial Public Offers (IPO) under
the Application Supported by Blocked Amount (ASBA) mechanism, subject to such
terms and conditions as may be stipulated by the Reserve Bank from time to
time."
(ii) after paragraph '4', the following new paragraph shall be inserted and the
same shall be deemed to have come into force with effect from the 21st day of
July 2011 :-.
"5. A non-resident importer / exporter may enter into a forward contract with
rupee as one of the currencies or a foreign currency – rupee option contract
with an Authorised Dealer in India to hedge the currency risk in respect of
exports from and imports to India, invoiced in Indian Rupees, subject to such
terms and conditions as may be stipulated by the Reserve Bank from time to
time."
(Meena Hemchandra)
Chief General Manager-in-charge
Footnote:-
1. @ It is clarified that no person will be adversely affected as a result of
retrospective effect being given to these regulations.
2. The principal regulations were published in the Official Gazette vide GSR
No.411(E) dated May 8, 2000 in Part II, Section 3, sub-section (i) and
subsequently amended vide –
GSR No.756(E) dt. 28.9.2000,
GSR No.264(E) dt. 09.4.2002,
GSR No.579(E) dt. 19.8.2002,
GSR No.222(E) dt. 18.3.2003,
GSR No.532(E) dt. 09.7.2003,
GSR No.880(E) dt. 11.11.2003,
GSR No.881(E) dt. 11.11.2003,
GSR No.750(E) dt. 28.12.2005,
GSR No.222(E) dt. 19.04.2006,
GSR No.223(E) dt. 19.04.2006,
GSR No.760(E) dt.07.12.2007,
GSR No.577(E) dt.05.08.2008,
GSR No.440(E) dt.23.06.2009,
GSR No.895(E) dt.14.12.2009,
GSR No.635(E) dt.27.07.2010, and
GSR No.______ dt._________