Notification No.FEMA.86/2003-RB
Dated the March 1, 2003

In exercise of the powers conferred by clause (a) of sub-section (3) of Section 6 and 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.19/RB-2000, dated May 3, 2000, the Reserve Bank of India makes the following amends to the Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2000, as amended from time to time namely :

1. (i) These Regulations may be called the Foreign Exchange Management (Transfer or Issue of any Foreign Security) (Amendment) Regulations, 2003.

(ii) They shall come into force from the date of their publication in the Official Gazette.

Amendment of the Regulations

In the Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2000, in Regulation 6 -

a) in sub-regulation (2),

1. in clause (i), in the second proviso, for the words and figure "US $ 50 million", the words and figure "US $ 100 million", shall be substituted;

2. for clause (iii), the following clause shall be substituted, namely : -
3. "(iii) The direct investment is made in the overseas JV or WOS engaged in a bonafide business activity;"

b) in sub-regulation (3),

1. in clause (ii), for the words and figure "not exceeding 50%," the words and figure "up to 100%", shall be substituted;

2. the proviso shall be omitted.

( K.J. Udeshi )