Notification No. FEMA.184 / 2009-RB
Dated January 20, 2009
Foreign Exchange Management (Transfer or Issue of Any
Foreign Security) ( Amendment) Regulations, 2009
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), the Reserve Bank of India hereby makes the following amendments in
the Foreign Exchange Management (Transfer or Issue of Any Foreign Security)
Regulations, 2004 (Notification No. FEMA.120/2004-RB dated
July 7, 2004) namely:-
- Short Title & Commencement:-
(i) These Regulations shall be called the Foreign Exchange Management (Transfer
or Issue of Any Foreign Security) (Second Amendment) Regulations, 2009.
(ii) These Regulations shall be deemed to have come into effect from 19th day of
July 2007.
- Insertion of new regulation 27 :-
In the Foreign Exchange Management (Transfer or Issue of Any Foreign Security)
Regulations, 2004 (Notification No. FEMA.120/2004-RB dated July 7, 2004, after
regulation 26, the following regulation shall be inserted, namely:-
" 27: Opening of Demat Accounts by Clearing Corporations of Stock Exchanges and
Clearing Members
A Person resident in India being a Securities and Exchange Board of India
approved clearing corporation of stock exchanges and their clearing members may,
subject to the guidelines issued by the SEBI from time to time;
i) open and maintain demat accounts with foreign depositories and acquire, hold,
pledge and transfer the foreign sovereign securities, offered as collateral by
FIIs;
ii) remit the proceeds arising from corporate action, if any, on such foreign
sovereign securities; and
iii) liquidate such foreign sovereign securities and repatriate the proceeds
thereof to India.”
(Salim Gangadharan)
Chief General Manager-in-Charge
(i) Foot Note:
The Foreign Exchange Management (Transfer or Issue of Any Foreign Security)
Regulations, 2004 were published in the Official Gazette vide G.S.R.No.757 (E)
dated November 19, 2004 and subsequently amended vide
G.S.R. No. 220(E) dated April 7, 2005
G.S.R. No. 337(E) dated May 27, 2005
G.S.R. No. 552(E) dated August 31, 2005
G.S.R. No. 535(E) dated September 6, 2006
G.S.R. No. 13(E) dated January 5, 2008
G.S.R. No. 209(E) dated March 3, 2008
(ii) It is clarified that no person will be adversely affected as a result of
retrospective effect being given to these Regulations.