Foreign Exchange Management (Transfer or Issue of any
Foreign Security) (Second Amendment) Regulations, 2005
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) and in partial modification of its Notification
No.FEMA120/RB-2004 dated 7th July 2004, the Reserve Bank of India makes
the following amendments in the Foreign Exchange Management (Transfer or Issue
of Any Foreign Security) Regulations, 2004, namely:
1. Short title and commencement :-
ii. These Regulations may be called the Foreign Exchange Management
(Transfer or Issue of Any Foreign Security) (Second Amendment) Regulations,
2005.
ii. They shall come in force from the date of their publication
in the Official Gazette.
2. Amendment to the Regulations :-
In the Foreign Exchange Management (Transfer or Issue of Any
Foreign Security) Regulations, 2004 :-
i. In Regulation 6, in sub-regulation 2, in the Explanation to clause
(i) the following shall be substituted :
(a) 'Explanation : For the purpose of determining 'total
financial commitment' within the limit of 100% of the net worth, the following
shall be reckoned, namely:'
(b) For sub clause (a), the following shall be substituted
:
'(a) remittance by market purchases, namely in freely convertible
currencies; in case of Bhutan, investment made in freely convertible currencies
or equivalent Indian Rupees; in case of Nepal investment made only in Indian
Rupees.'
ii. In Regulation 15, after clause (ii) the following proviso
may be added.
'Provided that in the case of investment in securities in Bhutan
made in freely convertible currency, all dues receivable thereon as are repatriable,
including those on account of disinvestment / dissolution / winding up, shall
be realised and repatriated in freely convertible currency only.'