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Foreign Exchange Management (Transfer or Issue of Any Foreign Security)
(Amendment) Regulations, 2000
FEMA
Notification No. 59 dated 24th April 2002
In
exercise of the powers conferred by clause (a) of Sub-section (3) of Section 6,
and Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999) and in
partial modification of its Notification No. FEMA 19/ 2000-RB dated 3rd
May 2000, Reserve Bank of India makes the following Regulations to amend the
Foreign Exchange Management (Transfer or Issue of any foreign security)
Regulations, 2000, as amended from time to time, namely:
1.
(a)
These Regulations may be called the Foreign Exchange Management
(Transfer or Issue of any foreign security) (Fifth Amendment) Regulations, 2000.
(b)
They shall come into force from the date of their publication in the
Official Gazette.
2.
In the Foreign Exchange Management (Transfer or Issue of any foreign
security) Regulations, 2000
(1)
In regulation 21,
(i)
Clauses (a) and (b) of sub-regulation (1) may be substituted by the
following:
(a)
A person resident in India being an individual may acquire foreign
securities as qualification shares issued by a company incorporated outside
India for holding the post of a director in the company:
Provided
that,
(i)
The number of shares so acquired shall be the minimum required to be held
for holding the post of director and in any case shall not exceed 1% of the
paid-up capital of the company, and
(ii)
the consideration for acquisition of such shares does not exceed US $
20,000 (Twenty Thousand only) in a calendar year.
(b)
A person resident in India being an individual seeking to acquire
qualification shares in a company outside India beyond the limits laid down in
the proviso to clause (a) shall apply to the Reserve Bank for prior approval.
(ii)
The following shall be inserted as clause (c) in sub-regulation (1) and
the existing clause (c) shall be relettered as (d).
(c)
�A person resident in India being an individual, may acquire foreign
securities by way of rights shares in a company incorporated outside India:
Provided
that the right shares are being issued by virtue of holding shares in
accordance with the p
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