Notification No. FEMA.180/RB-2008
dated September 5, 2008
Foreign Exchange Management (Transfer or Issue of Any
Foreign Security) (Amendment) Regulations, 2008
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/RB-2004 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) (Amendment) Regulations, 2008.
(ii) These Regulations shall be deemed to have come into effect from the 1st day
of June 2007.
- Amendment of Regulation 6:-
In the Foreign Exchange Management (Transfer or Issue of Any Foreign Security)
Regulations, 2004 (Notification No.FEMA 120/RB-2004 dated July 7, 2004
(hereinafter referred to as the 'principal regulations' ) in Regulation 6,
(i) in sub- regulation (2), for clause (iv), the following shall be substituted,
namely:-
“(iv) The Indian Party has submitted its Annual Performance Report in respect of
all its overseas investments in the format given in Part III of the Form ODI .”
(ii) in sub- regulation ( 2 ), for clause ( vi ), the following shall be
substituted, namely:-
“(vi) the Indian Party submits Part I of the Form ODI, duly completed, to the
designated branch of an authorised dealer.”
(iii) in sub-regulation (5), in the proviso, for clause (b), the following shall
be substituted, namely:-
“(b) The Indian Party files with the designated authorised dealer in Parts I and
II of the Form ODI full details of the investment proposed."
- Amendment of Regulation 9:-
In the principal Regulations, in Regulation 9, in sub-regulation (2), the
following shall be substituted, namely:-
“(2) Application for direct investment in Joint Venture/Wholly Owned Subsidiary
outside India, or by way of exchange for shares of a foreign company, shall be
made in Part I of the Form ODI.”
- Amendment of Regulation 14:-
In the principal Regulations, in Regulation 14, in sub-regulation (2), for
clause (ii) of the following shall be substituted, namely:-
“(ii) The Indian Party shall submit through the designated authorised dealer
concerned a report to the Reserve Bank in Parts I and II of the Form ODI within
30 days of effecting the final remittance.”
- Amendment of Regulation 15:-
In the principal Regulations, in Regulation 15, for clause (iii) the following
shall be substituted, namely:-
“(iii) submit to the Reserve Bank through the Authorised Dealer every year
within 60 days from the date of expiry of the statutory period as specified by
the respective laws of the host country for finalization of the audited accounts
of the Joint Venture/Wholly Owned Subsidiary outside India or such further
period as may be allowed by Reserve Bank, an Annual Performance Report in Form
ODI Part III in respect of each Joint Venture or Wholly Owned Subsidiary outside
India set up or acquired by the Indian Party and other reports or documents as
may be specified by the Reserve Bank from time to time.”
- Substitution of Regulation 19:-
In the principal Regulations, for Regulation 19, the following shall be
substituted, namely:-
“19. Prior permission of the Reserve Bank for a Proprietary Concern in India to
accept shares
A proprietary concern in India may apply to the Reserve Bank through the
authorised dealer in Part I of the Form ODI for permission to accept shares of a
company outside India in lieu of fees due to it for professional services
rendered to the said company.
Provided that:-
(a) the value of the shares accepted from each company outside India shall not
exceed fifty per cent of the fees receivable by the Indian concern from that
company; and,
(b) the Indian concern’s shareholding in any one company outside India by virtue
of shares accepted as aforesaid shall not exceed ten per cent of the paid-up
capital of the company outside India, whose shares are accepted.
- Substitution of Form
In the principal regulations, after Schedule II, at the end, for the Forms
annexed, Form ODI annexed to these regulations shall be substituted.
(Salim Gangadharan)
Chief General Manager-in-Charge
Foot Note:
(i) 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 25, 2008
G.S.R.No. -------- dated --------------------
(ii) It is clarified that no person will be adversely affected as a result of
retrospective effect being given to these Regulations.