RESERVE BANK OF INDIA
FOREIGN EXCHANGE DEPARTMENT
CENTRAL OFFICE
MUMBAI-400 001
Notification No. FEMA. 291/2013-RB
Dated : October 04, 2013
Foreign Exchange Management (Transfer or Issue of Security by a Person Resident
outside India)
(Fifteenth Amendment) Regulations, 2013
In exercise of the powers conferred by clause (b) of sub-section (3) of Section
6 and 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 Security by a Person Resident outside
India) Regulations, 2000 (Notification No. FEMA 20/2000-RB dated 3rd May 2000),
namely:-
1. Short Title & Commencement:-
(i) These Regulations may be called the Foreign Exchange Management (Transfer or
Issue of Security by A Person Resident Outside India) (Fifteenth Amendment)
Regulations, 2013.
(ii) They shall come into force from the date of their publication in the
Official Gazette.
2. Amendment of Regulation 7
In the Foreign Exchange Management (Transfer or Issue of Security by a Person
Resident outside India) Regulations, 2000, (Notification No. FEMA 20/2000-RB
dated 3rd May 2000), in Regulation 7, after sub-regulation (1), the following
shall be inserted, namely:-
“(2) Where a Scheme of Arrangement for an Indian company has been approved by a
Court in India, the Indian company may issue non-convertible redeemable
preference shares or debentures out of its general reserves by way of
distribution as bonus to the shareholders resident outside India, subject to the
following conditions, namely:
a) the original acquisition of shares / convertible debentures (including
non-convertible/ optionally convertible / partially convertible preference
shares issued as on and up to April 30, 2007 and optionally convertible /
partially convertible debentures issued up to June 7, 2007 under Foreign Direct
Investment Scheme and treated as eligible (FDI) compliant instruments under the
then applicable guidelines) of the Indian company by non-resident shareholders
entitling them to hold non-convertible redeemable preference shares or
debentures is in accordance with these Regulations and the conditions specified
in the relevant Schedule;
b) in accordance with the provisions of the Companies Act, as applicable and the
terms and conditions, if any, stipulated in the scheme approved by the Court in
India have been complied with;
c) the Indian company or transferee company or a new company has a ‘No objection
certificate’ from Income Tax authority ; and
d) the Indian company shall not engage in any activity/sector mentioned in Annex
A to Schedule 1 to these Regulations.”
(Rudra Narayan Kar)
Chief General Manager-in-Charge
Foot Note:-
The Principal Regulations were published in the Official Gazette vide G.S.R.
No.406 (E) dated May 8, 2000 in Part II, Section 3, sub-Section (i) and
subsequently amended as under:-
G.S.R.No. 158(E) dated 02.03.2001
G.S.R.No. 175(E) dated 13.03.2001
G.S.R.No. 182(E) dated 14.03.2001
G.S.R.No. 4(E) dated 02.01.2002
G.S.R.No. 574(E) dated 19.08.2002
G.S.R.No. 223(E) dated 18.03.2003
G.S.R.No. 225(E) dated 18.03.2003
G.S.R.No. 558(E) dated 22.07.2003
G.S.R.No. 835(E) dated 23.10.2003
G.S.R.No. 899(E) dated 22.11.2003
G.S.R.No. 12(E) dated 07.01.2004
G.S.R.No. 278(E) dated 23.04.2004
G.S.R.No. 454(E) dated 16.07.2004
G.S.R.No. 625(E) dated 21.09.2004
G.S.R.No. 799(E) dated 08.12.2004
G.S.R.No. 201(E) dated 01.04.2005
G.S.R.No. 202(E) dated 01.04.2005
G.S.R.No. 504(E) dated 25.07.2005
G.S.R.No. 505(E) dated 25.07.2005
G.S.R.No. 513(E) dated 29.07.2005
G.S.R.No. 738(E) dated 22.12.2005
G.S.R.No. 29(E) dated 19.01.2006
G.S.R.No. 413(E) dated 11.07.2006
G.S.R.No. 712(E) dated 14.11.2007
G.S.R.No. 713(E) dated 14.11.2007
G.S.R.No. 737(E) dated 29.11.2007
G.S.R.No. 575(E) dated 05.08.2008
G.S.R.No. 896(E) dated 30.12.2008
G.S.R.No. 851(E) dated 01.12.2009
G.S.R.No. 341 (E) dated 21.04.2010
G.S.R.No.821 (E) dated 10.11.2012
G.S.R.No. 606(E) dated 03.08.2012
G.S.R.No. 795(E) dated 30.10.2012
G.S.R.No. 796(E) dated 30.10.2012
G.S.R. No. 797(E) dated 30.10.2012
G.S.R. No.945(E) dated 31.12.2012
G.S.R. No.946(E) dated 31.12.2012
G.S.R. No.38(E) dated 22.01.2013
G.S.R.No.515(E) dated 30.07.2013,
G.S.R.No.532(E) dated 05.08.2013,
G.S.R. No.341(E) dated 28.05.2013
G.S.R.No.344(E) dated 29.05.2013
G.S.R. No.195(E) dated 01.04.2013
G.S.R.No.393(E) dated 21.06.2013,
G.S.R.No.591(E) dated 04.09.2013
G.S.R.No.596(E) dated 06.09.2013
G.S.R.No.597(E) dated 06.09.2013
G.S.R.No.681(E) dated 11.10.2013
G.S.R.No.682(E) dated 11.10.2013
Published in the Official Gazette of Government
of India – Extraordinary – Part-II, Section 3,
Sub-Section (i) dated 31.12.2013- G.S.R.No.818 (E)