In
exercise of the powers conferred by clause (h) of sub-section 2 of Section 47
of the Foreign Exchange Management Act, 1999 (42 of 1999) the Reserve Bank of
India makes the following amendments in the Foreign Exchange Management (Foreign
Exchange Derivative Contracts) Regulations, 2000, (Notification
No. FEMA 25/RB-2000 dated May 3, 2000) namely:-
1.
Short Title and Commencement:
(i)
These Regulations may be called the Foreign Exchange Management (Foreign Exchange
Derivative Contracts) (Amendment) Regulations, 2006.
(ii)
They shall come in to force from June 23, 2005*.
2.
Amendment of the Regulations
In
the Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations,
2000 (Notification No. FEMA 25/RB-2000 dated May 3, 2000) in Schedule I in paragraph
'A' in item No.1, for sub-item (h) the following shall be substituted, namely:-
'(h)
Contracts involving the rupee as one of the currencies, once cancelled, shall
not be rebooked except as otherwise permitted by the Reserve Bank from time to
time although they can be rolled over at on-going rates on or before maturity.
Such contracts booked by residents to hedge current account transactions, regardless
of tenor, not being those booked on past performance basis without documents or
booked to hedge transactions denominated in foreign currency but settled in Indian
Rupee, may be cancelled and rebooked freely at on going rates. Contracts covering
export transactions may also be cancelled, rebooked or rolled over at on going
rates without any restriction.'
(Vinay Baijal)
Chief General
Manager
Footnote:-
1.*
It is clarified that no person will be adversely affected as a result of retrospective
effect being given to these Regulations.
2.
The principal regulations were published in the Official Gazette vide GSR No.411(E)
dated May 8, 2000 in Part II, Section 3, sub-section (i) and subsequently amended
vide –
GSR
No.756(E) dt. 28.9.2000,
GSR
No.264(E) dt. 09.4.2002,
GSR
No.579(E) dt. 19.8.2002,
GSR
No.222(E) dt. 18.3.2003,
GSR
No.532(E) dt. 09.7.2003,
GSR
No.880(E) dt. 11.11.2003,
GSR
No.881(E) dt. 11.11.2003. and
GSR
No.750(E) dt. 28.12.2005.