Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Second Amendment) Regulations, 2013


Dated 27th July 2013

Reserve Bank of India (Foreign Exchange Department) vide its Notification No. FEMA. 255/2013-RB Dated January 19, 2013 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) (Second Amendment) Regulations, 2013.

          (ii) They shall come into force from the date of publication in Official Gazette

2.  Amendment of Schedule 5

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 Schedule 5,

          (a)   In paragraph 1, in clauses (g) and (h) the words “and lock-in period” shall be omitted.

          (b)   In paragraph 1, in clause (i), the words “lock-in period and” and “provided that the FIIs may trade such bonds / units amongst the eligible non-resident investors for Infrastructure Debt Funds within the lock-in period” shall be omitted.

          (c)    In paragraph 1B, in clause (i), the words “lock-in period and” and “provided that aforementioned investors may trade such bonds / units amongst the eligible non-resident investors for Infrastructure Debt Funds within the lock-in period” shall be omitted.

          (d)   In paragraph 1B, in clause (ii) for the words “dated Government securities subject to the terms and conditions as stipulated by the SEBI and Reserve Bank from time to time.” the words “dated Government Securities, subject to the terms and conditions and the limits as stipulated by the Reserve Bank and SEBI from time to time.”  shall be substituted.

          (e)   In paragraph 1B, after clause (ii) a new clause (iii) shall be added, namely:

                  “(iii) Long term investors like Sovereign Wealth Funds (SWFs), Multilateral Agencies, Endowment Funds, Insurance Funds and Pension Funds   registered with SEBI as eligible non-resident investors in Infrastructure Debt Funds may purchase Rupee denominated corporate bonds  on repatriation basis  within the limits as stipulated by the Reserve Bank and SEBI from time to time.  In addition, Foreign Central Banks may purchase rupee denominated corporate bonds on repatriation basis within the limits from the date of this Notification.”

SOURCE: RESERVE BANK OF INDIA

 

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