RESERVE BANK OF INDIA
FOREIGN EXCHANGE DEPARTMENT
CENTRAL OFFICE
MUMBAI
Notification No. FEMA 191/RB-2009
Dated May 20, 2009
Foreign Exchange Management (Foreign Exchange Derivative Contracts)
(Amendment) Regulations, 2009.
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
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:-
- Short Title and Commencement :
(i) These Regulations may be called the Foreign Exchange Management (Foreign
Exchange Derivative Contracts) (Amendment) Regulations, 2009.
(ii) They shall be deemed to have come in to effect from the 4 th day of
February, 2009 @.
- Amendment of Regulation - In the Foreign Exchange Management (Foreign
Exchange Derivative Contracts) Regulations, 2000 (Notification No. FEMA
25/RB-2000 dated May 3, 2000), after Regulation 6, the following new regulation
shall be inserted namely :-
" Freight" hedge
6A. (i) Reserve Bank may, on an application made in accordance with such
procedure as may be directed by Reserve Bank, permit a person resident in India,
subject to such terms and conditions as may be considered necessary, to enter in
to a freight derivative contract in an exchange or a market out side India to
hedge the freight risk such person is exposed to.
(ii) Notwithstanding anything contained in sub regulation (i) an authorised
dealer in India specially authorised by the Reserve Bank under sub-regulation
(ii) of Regulation 6 may permit an oil refining company or a shipping company,
resident in India, to enter in to freight derivative contracts in an exchange or
market outside India, to hedge the freight risk which the company is exposed to,
subject to such terms and conditions as may be stipulated by the Reserve Bank
from time to time.
Provided that such authorised dealer category-I bank shall exercise the
authority subject to directions and guidelines issued to them by the reserve
Bank in that behalf."
(Salim Gangadharan)
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 3, 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. 19.4.2006,
GSR No.223(E) dt. 19.4.2006
GSR No.760(E) dt. 07.12.2007
GSR.No.577(E) dt. 05.08.2008 and
GSR.No........(E) dt.