RESERVE BANK OF INDIA
FOREIGN EXCHANGE DEPARTMENT
CENTRAL OFFICE
MUMBAI-400 001
Notification No. 276/2013-RB
Dated : May 08, 2013
Foreign Exchange Management (Guarantees) (Fourth Amendment) Regulations, 2013
In exercise of the powers conferred by clause (j) of sub-section (3) of Section
6, and 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 (Guarantees) Regulations, 2000
(Notification No. FEMA 8/2000-RB dated May 3, 2000), namely:-
1. Short title and commencement
(a) These Regulations may be called the Foreign Exchange Management (Guarantees)
(Fourth Amendment) Regulations, 2013.
(b) They shall come into force from the May 27, 2011.@
2. Amendment of Regulation 5
In Regulation 5 of the Foreign Exchange Management (Guarantees) Regulations,
2000 (Notification No. FEMA 8/2000-RB) dated May 3, 2000,for clause (b) the
following shall be substituted and the same shall be deemed to have been
substituted with effect from May 27, 2011.
"(b) (i) An Indian Party promoting or setting up outside India, a Joint Venture
(JV) or a Wholly Owned Subsidiary (WOS), may give a guarantee to or on behalf of
the latter in connection with its business:
Provided that the terms and conditions stipulated in Foreign Exchange Management
(Transfer and Issue of Foreign Security) (Amendment) Regulations, 2004 for
promoting or setting up such company or subsidiary are continued to be complied
with;
Provided further that the guarantee under this clause may also be given by an
authorized dealer in India;
(ii) An Indian Party promoting or setting up outside India, a Joint Venture (JV)
or a Wholly Owned Subsidiary (WOS), may give a guarantee to or on behalf of the
first generation step down operating company in connection with its business:
Provided that the terms and conditions stipulated in Foreign Exchange Management
(Transfer and Issue of Foreign Security) (Amendment) Regulations, 2004 for
promoting or setting up such company or subsidiary are continued to be complied
with.
Explanation: 'Indian Party' shall have the same meaning as assigned to it in
Foreign Exchange Management (Transfer or Issue of Any Foreign Security)
(Amendment) Regulations, 2004."
(Rashmi Fauzdar)
Chief General Manager
Foot Note:
(i) @It is clarified that no person will be adversely affected as a result of
retrospective effect being given to these regulations.
(ii) The Principal Regulations were published in the Official Gazette vide No.
G.S.R. No.391 (E) dated May 5, 2000 in Part II, Section 3, Sub-Section (i) and
subsequently amended vide:
- G.S.R. No. 575 (E) dated 19-8-2002
- G.S.R. No. 745 (E) dated 16-11-2004
- G.S.R. No. 61 (E) dated 9-2-2005
- G.S.R. No. 196 (E) dated 14-3-2007
- G.S.R. No. 300 (E) dated 01-05-2009
- G.S.R. No. 298 (E) dated 01-05-2009
- G.S.R. No. 634 (E) dated 27-07-2010
- G.S.R. No.____(E) dated _________
- G.S.R. No.____(E) dated _________
- G.S.R. No.____(E) dated _________