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Foreign Exchange Management (Foreign Exchange Derivative Contracts) (Amendment) Regulations, 2017

RESERVE BANK OF INDIA

(Financial Markets Regulatory Department)

(CENTRAL OFFICE)

NOTIFICATION

Mumbai, the 17th March, 2017

No. FEMA. 384/RB-2017

Foreign Exchange Management (Foreign Exchange Derivative Contracts) (Amendment) Regulations, 2017

G.S.R. 260(E).—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 hereby 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, 2017.

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

2. Amendment under Schedule II: In the Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000 (Notification No. FEMA 25/RB-2000 dated May 3, 2000), in Schedule II, after the existing para 6, the following shall be added, namely:

A non-resident may enter into a foreign exchange derivative contract with an Authorised Dealer bank in India to hedge an exposure to exchange risk of and on behalf of its Indian subsidiary in respect of the said subsidiary’s transactions subject to such terms and conditions as may be stipulated by the Reserve Bank from time to time.

[F. No. 1/15/EM/2015]

T. RABI SANKAR, Chief General Manager

Footnote : The principal regulations were published in the Official Gazette vide G.S.R. No. 411(E) dated May 8, 2000 in Part II, Section 3, sub-section (i) and subsequently amended vide–

G.S.R. No. 756(E) dt. 28.09.2000,

G.S.R. No. 264(E) dt. 09.04.2002,

G.S.R. No. 579(E) dt. 19.08.2002,

G.S.R. No. 222(E) dt. 18.03.2003,

G.S.R. No. 532(E) dt. 09.07.2003,

G.S.R. No. 880(E) dt. 11.11.2003,

G.S.R. No. 881(E) dt. 11.11.2003,

G.S.R. No. 750(E) dt. 28.12.2005,

G.S.R. No. 222(E) dt. 19.04.2006,

G.S.R. No. 223(E) dt. 19.04.2006,

G.S.R. No. 760(E) dt. 07.12.2007,

G.S.R. No. 577(E) dt. 05.08.2008,

G.S.R. No. 440(E) dt. 23.06.2009,

G.S.R. No. 895(E) dt. 14.12.2009,

G.S.R. No. 635(E) dt. 27.07.2010,

G.S.R. No. 608(E) dt. 03.08.2012,

G.S.R. No. 799(E) dt. 30.10.2012,

G.S.R. No. 330(E) dated 23.05.2013,

G.S.R. No. 374(E) dated 02.06.2014,

G.S.R. No. 365(E) dated 01.06.2016 and

G.S.R. No. 378(E) dated 25.10.2016.

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