Foreign investment caps in securities market infrastructure impose segmented limits with prior approval and secondary-market conditions.
Foreign investment in infrastructure companies in the securities markets is permitted with a combined foreign investment cap of 49 per cent, separately allocated as 26 per cent for FDI and 23 per cent for FII. FDI requires specific prior government approval; FII is permitted only through secondary-market purchases. Investments must comply with securities regulator requirements, authorised dealer banks must inform constituents, and implementing amendments to foreign exchange regulations will follow.

Liberalised remittance limit increased, allowing resident individuals larger annual outward transfers under prescribed conditions.
The Reserve Bank increases the annual ceiling under the Liberalised Remittance Scheme for resident individuals to a higher limit per financial year for current or capital account transactions, expressly including gifts, donations and investments in overseas companies while removing the previous reciprocal shareholding requirement; AD Category I banks are to permit remittances within the revised limit, collect prescribed Application cum Declaration forms, and submit quarterly reports of applicants and amounts remitted.

Revision of special currency basket valuation alters rupee conversion for deferred payment protocols; AD I banks to apply new rate.
Revision of the rupee valuation of the special currency basket for accounting deferred payment obligations under the Deferred Payment Protocols is announced; Authorised Dealer Category I banks must adopt the revised rupee value for conversion and notify their constituents. Directions are issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 and without prejudice to other statutory permissions.

Forward contract booking based on past performance: enhanced flexibility but excess bookings become deliverable and non cancellable.
Authorised Dealer Category I banks may allow importers and exporters to book forward contracts based on a declaration of exposure and past performance (higher of three year average or prior year turnover), with separate eligible limits for imports and exports and the aggregate outstanding not to exceed the eligible limit. Forward contracts exceeding prescribed thresholds are deliverable and non cancellable. ADs must mark un documented bookings against limits, obtain declarations of bookings with other ADs, may require undertakings to produce documentary evidence, and must submit monthly utilisation reports; documentary proof removes the eligible limit constraint.

Forward cover for customs duty permitted, enabling importers to hedge currency-indexed duty exposure subject to maturity and cancellation rules.
AD Category - I banks may provide forward contracts to hedge importers' currency-indexed exposure for the customs duty component of imports; such contracts must be held to maturity and are cash-settled by cancellation on maturity, are not eligible for rebooking after cancellation, but may be cancelled or rebooked before maturity if government notifications change customs duty rates.

Line of Credit enables Indian export finance for ECOWAS public projects with specified utilisation periods and FEMA compliance.
Exim Bank extended a Line of Credit to EBID to finance exports from India to EBID member countries under the Foreign Trade Policy. The Credit Agreement is effective October 17, 2006, with utilisation periods of 48 months from project completion for project contracts and 72 months from execution for supply contracts. The LOC is available only for public sector projects; EBID must forward project proposals to the Ministry of External Affairs before Exim Bank approval. Shipments must be declared on GR/SDF forms. No agency commission is payable under the LOC, though exporters may use own funds or EEFC balances for commission after realisation, subject to prevailing instructions.

Line of credit for export financing requires GR/SDF declarations and permits commission payment from exporter resources after realisation.
Exim Bank extended a Line of Credit to Myanma Foreign Trade Bank to finance exports for renovation of the Thanlyin Refinery; the agreement is effective from October 23, 2006, with utilisation periods set at 48 months after project completion for project exports and until August 16, 2012 for supply contracts. Shipments must be declared on GR/SDF forms. No agency commission is payable under the LOC, though exporters may use own funds or EEFC balances for commission after realisation; AD Category I banks must notify exporters and facilitate compliance under regulatory directions.

Remittance limits for overseas offices raised allowing higher initial and recurring expense remittances under existing conditions.
AD Category I banks may authorise increased remittances for initial and recurring expenses for overseas branches, offices or representatives under prescribed financial tests, and such authorised remittances may be used by Indian companies with overseas offices to acquire immovable property abroad for business and staff residential purposes, subject to existing terms and any other legal approvals; regulatory amendments will be issued separately.

External Commercial Borrowings limit expansion allows additional approved long term borrowings and greater bank prepayment authority.
Amendment permits corporates additional ECB under the approval route for longer dated borrowings provided they meet minimum average maturity and comply with end use, recognised lender and all in cost conditions; prepayment and call/put options are not permitted on such additional ECB for the initial period. AD Category I banks may allow increased borrower prepayment without prior Reserve Bank approval, subject to the applicable minimum average maturity requirement. The changes are effective immediately and will be reflected in amendments to the Foreign Exchange Management Regulations.

Line of credit for export financing enables tractors' exports under specified timelines and FEMA directions.
A foreign currency Line of Credit by Exim Bank finances export of SAME tractors and related items, effective October 27, 2006, with Letters of Credit opening and disbursement terminal dates set at twenty-four and thirty months respectively; shipments must be declared on GR/SDF forms, no agency commission is payable under the LOC though exporters may use own funds or EEFC balances for commission subject to AD Category-I banks' post-realisation approval, and the circular is issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act without prejudice to other required permissions.

EEFC account liberalisation allows full foreign exchange earnings to be credited, expanding permissible credits and debits.
The circular allows all categories of foreign exchange earners to credit up to 100 per cent of specified foreign exchange earnings to their EEFC Account, leaving other Scheme terms unchanged and noting forthcoming regulatory amendments. The Schedule specifies eligible categories and qualifying receipts (inward remittances via normal banking channels, export receipts for specified units, counter-trade receipts, advance export remittances, certain repayments, and professional earnings). Permissible credits include interest, recredits and disinvestment receipts; permissible debits cover permitted current and capital account payments, payments to specified export units, customs duties, trade loans to importer customers, and payments to residents for goods and services. Rupee withdrawals are unrestricted but not reconvertible.

Current account liberalisation: banks may allow foreign exchange drawal for purchase of trademark or franchise without prior central approval.
Authorised Dealer Category I banks may permit persons to draw foreign exchange for purchase of trademark or franchise in India without obtaining prior approval of the Reserve Bank, consequent to the amendment of the Foreign Exchange Management (Current Account Transactions) Rules, 2000; this relaxation is subject to compliance with other applicable laws and FEMA obligations.

Bank guarantees for service imports permitted with conditions and documentary proof, and mandatory reporting upon invocation.
Authorised Dealer Category I banks are permitted to issue bank guarantees for import of services provided the guarantee does not exceed the prescribed amount, the bank is satisfied as to the bonafides, documentary evidence of import of services is obtained, and the guarantee secures a direct contractual liability between a resident and a non resident; invocation requires the bank to report circumstances to the Chief General Manager in Charge, Foreign Exchange Department, Reserve Bank of India.

Remittance of NRO account funds liberalised, allowing sale proceeds of immovable property within the annual remittance ceiling.
AD Category I banks may permit remittances from NRO accounts, including sale proceeds of immovable property, subject to an overall cap of USD one million per financial year; the prior ten year lock in on remittance of sale proceeds has been removed. Banks must continue to observe existing documentary and other conditions and submit quarterly statements of applicants and amounts remitted to the Reserve Bank in the prescribed proforma within ten days of the reporting quarter.

Overseas investment ceiling for mutual funds increased, expanding permissible corpus for SEBI-registered funds while reporting obligations remain.
Aggregate overseas investment limit for Mutual Funds registered with SEBI is increased with immediate effect, while all other SEBI terms, conditions and operational guidelines remain unchanged. Monthly statistical reporting to the Reserve Bank continues to be mandatory, and Authorised Dealer Category I banks must notify their constituents. The directions are issued under the Foreign Exchange Management Act and do not affect permissions required under other laws.

Consolidated R-Return reporting option requires bank-wide submission with nodal-branch responsibility for data accuracy and FEMA compliance.
Authorised Dealer Category I banks may opt for consolidated bank-wide R-Return submission requiring in-principle Reserve Bank approval, coverage of all branches, and submission of hard-copy cover pages by a designated nodal branch with a reconciled soft-copy file. The nodal branch and authorised signatory bear responsibility for accuracy, completeness and timely submission of FET-ERS data and consistency between hard and soft copies; non-compliance may invite action under Sections 10 and 11 of FEMA.

Line of Credit to foreign government permits export financing and sets utilisation, declaration, and commission remittance conditions.
The circular announces an Exim Bank Line of Credit to the Government of Burkina Faso for financing eligible exports and specified construction, sets distinct utilisation periods for project and supply contracts, requires shipments to be declared on GR/SDF forms, provides that no agency commission is payable under the LOC (while allowing exporters to remit commission from own or EEFC funds subject to AD Category I bank compliance and realisation of contract value), directs AD Category I banks to notify exporters and obtain Exim Bank details, and states the directions are issued under FEMA without prejudice to other approvals.

FDI ceiling increase in telecom: compliance period extended, modifying prior press note to allow additional rectification time.
The Press Note amends the earlier instrument by granting licensee companies in the telecom sector a further three month extension of the corrective compliance period to adhere to the conditions governing enhanced Foreign Direct Investment; it modifies Press Note 5 solely to the extent of this temporal adjustment and directs public notification of the amendment.

Line of Credit terms permit export financing for a Mauritius sewerage project with specified LC and disbursement deadlines.
A Line of Credit of US dollars ten million from Exim Bank to the Government of Mauritius finances eligible exports for the Baie du Tombeau Sewerage Project; the credit is effective from August 11, 2006, with Letters of Credit to be opened within 24 months and disbursement within 30 months. Shipments must be declared on GR/SDF forms. No agency commission is payable under the LOC, though exporters may use own funds or EEFC balances for commission after realisation, subject to prevailing rules; AD Category I banks must inform exporters and may facilitate remittances.

Line of Credit availability for export finance establishes utilisation timelines and declarations under foreign exchange rules.
A Line of Credit from Exim Bank to the Government of Niger finances exports from India eligible under the Foreign Trade Policy, became effective on August 30, 2006, and prescribes utilisation periods: 48 months from scheduled completion for project exports and until February 7, 2012 for supply contracts. Shipments must be declared on GR/SDF forms. No agency commission is payable under the LOC, though exporters may use their own funds or EEFC balances to pay commission after realisation of full contract value, subject to prevailing instructions and Authorised Dealer Category I bank compliance.