Reserve
Bank of India
Exchange Control Department
Central Office
Mumbai-400 001
Notification
No. FEMA. 81/2003-RB
Dated the
January 8, 2003
Foreign
Exchange Management (Foreign exchange
derivative contracts) (Amendment) Regulations, 2003
In exercise
of the powers conferred by clause (h) of sub-section (2) of Section 47 of the
Foreign Exchange Management Act, 1999 (Act 42 of 1999), and in partial modification
of its Notification No. FEMA 25/RB-2000 dated May 3, 2000, the Reserve Bank
of India makes the following amendments in the Foreign Exchange Management (Foreign
exchange derivative contracts) Regulations, 2000, as amended from time to time,
namely: -
2. Short
title and Commencement:
(i) These
Regulations may be called the Foreign Exchange Management (Foreign exchange
derivative contracts) (Amendment) Regulations, 2003.
(ii) They
shall come into force from the date of their publication in the Official Gazette.
3.Amendment of the Regulations
In the
Foreign Exchange Management (Foreign exchange derivative contracts) Regulations
2000,
A. In clause
(1) of Schedule II to the Notification,
a) Sub-clause
(a) shall be substituted by the following words:
'the value
of the hedge does not exceed the market value of the underlying debt or equity
instruments, provided forward contracts once booked shall be allowed to continue
to the original maturity even if the value of the underlying portfolio shrinks,
for reasons other than sale of securities'
b). Sub-clause
(b) shall be deleted and the subsequent sub-clauses (c) (d) and (e) shall be
renumbered as (b), (c) and (d) respectively.
B. Clause (3) of Schedule
II shall be substituted by the following words:
'Authorised
dealers may offer forward contracts to persons resident outside India to hedge
the investments made in India since January 1, 1993,subject to verification
of the exposure in India. These forward contracts once cancelled are not eligible
to be rebooked.'
(K.J. Udeshi)
Executive Director
Published in the Official Gazette of Government
of India - Extraordinary - Part-II, Section 3,
Sub-Section (i) dated 09.07.2003 - G.S.R.No.532(E)
|
|