Gold import controls: refiners' dore imports limited, FIFO refining and export-linked accrual restrictions enforced under FEMA directives
Refiners may import dore initially up to a capped share of their license entitlement for exporters on a FIFO basis; subsequent import quantities are to be lot wise based on export performance. Imported dore must be refined and released under the 20:80 principle, with customs monitoring. Further imports are allowed only against export proof on an accrual, export linked basis; Authorized Dealers must inform constituents. Directions issued under Sections 10(4) and 11(1) of FEMA, 1999.

Foreign investment in rupee bonds: non-residents may subscribe to tax-free secured non-convertible bonds enabling on-lending to infrastructure or deposit placement.
Resident entities authorised by the Government of India may issue tax-free, secured, redeemable, non-convertible bonds in Rupees to persons resident outside India; proceeds may be used only for on-lending/re-lending to the infrastructure sector or placed in fixed deposits with banks in India pending utilisation, pursuant to amendments to the Foreign Exchange Management (Borrowing and Lending in Rupees) Regulations and under the authority of the Foreign Exchange Management Act, 1999.

Special Currency Basket valuation revised, requiring authorised dealer banks to apply new rupee conversion and notify constituents under FEMA.
Revision of the Special Currency Basket rupee valuation is fixed at the updated value to apply from the specified effective date; Authorised Dealer Category I banks are required to apply this revised rupee value in their dealings and to notify their constituents. The Directions are issued under FEMA and are without prejudice to permissions or approvals required under other laws.

Line of Credit terms require majority sourcing from India and set LC/disbursement timelines with FEMA compliance.
Exim Bank extended a Line of Credit to the Government of Lao People's Democratic Republic to finance eligible goods, services, machinery and consultancy from India for storage dam and irrigation projects, requiring at least 75 percent of contract value to be supplied from India and allowing up to 25 percent procured externally. The agreement sets LC/disbursement timeframes for project and supply contracts, mandates GR/SDF declaration of shipments, disallows agency commission under the LOC while permitting exporter-paid commission from own resources or EEFC after realisation subject to AD Category I compliance, and is issued under provisions of FEMA.

Unlisted company overseas capital raising allowed with conditional two-year exemption from domestic listing, subject to jurisdiction and disclosure rules.
Unlisted companies may raise capital abroad without prior or subsequent domestic listing for an initial two year period subject to conditions: listing only on exchanges in IOSCO/FATF compliant jurisdictions or those with SEBI agreements; filing returns to SEBI for PMLA and complying with SEBI disclosure requirements; adherence to the FDI policy; use of proceeds for retiring overseas debt or operations abroad including acquisitions; and if not so utilised, remittance to India within 15 days with funds parked only in RBI recognized AD category banks.

External Commercial Borrowings for infrastructure projects allowed for holding companies and CICs to fund SPVs under conditions.
Holding companies and Core Investment Companies regulated by the Reserve Bank may raise External Commercial Borrowings for project use in SPVs in the infrastructure sector, provided the SPV is dedicated to the project, proceeds fund fresh capex or approved refinancing, and are used within three years of the SPV's Commercial Operations Date. Proceeds must be held in a separate escrow account and monitored by AD Category I banks, with an undertaking from the SPV against alternate funding for that capex. CICs must keep outside liabilities, including ECB, within 2.5 times adjusted net worth and, if below the asset threshold, raise ECB on a fully hedged basis.

Forward-forward swap permission for overseas foreign currency borrowings enables delivery extension until year-end with penalty for non delivery.
Banks with a firm loan sanction or commitment on or before November 30, 2013 may enter into a forward-forward swap selling forward the contracted foreign currency for delivery up to December 31, 2013; failure to deliver on the contracted date requires payment of the difference between the contracted concessional swap rate and the market swap rate plus one hundred basis points, with all other notified swap terms unchanged and the relaxation available only for contracts entered into up to November 30, 2013.

Special Currency Basket value revised, affecting deferred payment protocols and requiring AD Category I banks to notify constituents under FEMA.
The Reserve Bank fixed a revised rupee valuation of the Special Currency Basket for application to the Deferred Payment Protocols with effect from the specified date, instructing Authorised Dealer Category I banks to inform their constituents; the circular is issued under the Foreign Exchange Management Act and without prejudice to other legal permissions.

XBRL reporting requirement: AD banks must submit guarantees, LoUs and LoCs data online; manual filings discontinued promptly.
AD Category I banks must stop manual and emailed Excel reporting of guarantees, LoUs and LoCs and instead submit consolidated quarterly data via the Reserve Bank's XBRL platform using prescribed Form LOU; credentials must be obtained from the RBI, technical guidance is available, and from the quarter ending December 31, 2013 data are to be uploaded only on XBRL by the 10th of the succeeding month.

Foreign investment in credit-enhanced bonds: SEBI-registered FIIs, QFIs and long-term investors allowed within corporate debt limits.
SEBI-registered FIIs, QFIs and SEBI-registered long-term investors are permitted to invest on a repatriation basis in domestic credit-enhanced bonds issued under the ECB policy, subject to the eligibility, structural and operational conditions for credit enhancement set out in the relevant ECB circulars, and within the aggregate corporate debt investment ceiling; Category-I Authorised Dealer banks must inform their constituents, and the directions are issued under the foreign exchange regulatory statute without affecting other required permissions.

Export-restricted use of AA/DFIA: gold imports permitted only for export, no domestic diversion allowed under FEMA
Authorisations such as Advance Authorisation and Duty Free Import Authorisation must be used only for import of gold intended for export; diversion for domestic use is prohibited. Sequencing of imports prior to exports will not be insisted upon for authorisations issued before 14 August 2013. SEZ and EoU units and Premier and Star Trading Houses may import gold exclusively for export. Exports fulfilling AA/DFIA obligations do not qualify for the 20:80 scheme. Directions are issued under FEMA.

Foreign direct investment compliance: NoC filing waived under foreign exchange rules but regulator due diligence remains required.
Transfers of shares in financial sector investee companies from residents to non residents no longer require filing of No Objection Certificate (NoC) with form FC TRS under the Foreign Exchange Management regime; however, any fit and proper/due diligence requirements imposed by the sectoral regulator for the non resident investor must still be observed and complied with.

Advance remittance permission for rough diamond imports allows unlimited prepayments under prescribed conditions.
AD Category I banks may accept unlimited advance remittances without Bank Guarantee or Standby Letter of Credit from eligible importers for import of rough diamonds from specified mining companies, subject to conditions in A.P. (DIR Series) Circular No. 21; related instructions in A.P. Circular No. 59 on import of rough, cut and polished diamonds remain unchanged.

Third-party payments for trade permitted under conditions; banks must ensure FATF compliance and documentary safeguards.
AD banks may permit third-party payments for exports if supported by a firm irrevocable order/tripartite agreement, remitted via banking channels from FATF-compliant countries, declared in the EDF, with the exporter responsible for realization and XOS reporting naming the declared third party. For imports, third-party payments are allowed where a firm irrevocable purchase order/tripartite agreement exists, payment is from FATF-compliant countries through banks, invoice and Bill of Entry narrate payment to the named third party, importer complies with import rules, and eligible transactions do not exceed USD 100,000.

Unlisted company overseas issuance of ADRs/GDRs allowed without domestic listing, subject to compliance and reporting conditions.
Unlisted Indian companies are permitted to issue ADRs/GDRs and raise capital abroad without prior or simultaneous domestic listing for an initial two year period, subject to conditions: listing only in IOSCO/FATF compliant or SEBI partner jurisdictions; compliance with sectoral caps, entry routes, minimum capitalisation and FDI pricing norms; upfront determination of ADR/GDR-to-equity ratios and pricing under Schedule 1 of FEMA Notification No.20; adherence to downstream investment instructions; limited permitted uses of funds abroad; repatriation and parking requirements if funds are not used abroad; and specified FEMA reporting obligations.

Definition of group company clarifies FDI grouping criteria based on voting control or board appointment under FEMA regulations.
A definition for group company was incorporated into the FDI regulatory framework: enterprises are related where one can exercise specified voting control in another or can appoint a majority of the other's board. The Reserve Bank issued the definition to Authorised Dealer Category I banks and amended the FEMA transfer/issue of security regulations accordingly; the directions are issued under the Foreign Exchange Management Act and are without prejudice to other statutory permissions.

Line of Credit to Mozambique establishes sourcing, disclosure and disbursement rules under FEMA for eligible Indian exports.
Exim Bank provided a Line of Credit to Mozambique to finance eligible Indian exports for a housing project; financed goods, services and consultancy must meet Foreign Trade Policy eligibility and minimum Indian supply content (65% for goods and services; up to 75% for consultancy). The Credit Agreement effective October 4, 2013, sets differing timelines for opening Letters of Credit and disbursements for project and supply contracts. Shipments under the LOC require GR/SDF reporting. No agency commission is payable under the LOC, though exporters may pay commission from their own resources or EEFC balances subject to remittance rules. Directions issued under FEMA.

Line of Credit enables export financing with prescribed Indian content and FEMA compliance for project exports.
A Line of Credit from Export-Import Bank of India to the Government of Mozambique finances rehabilitation works by funding eligible goods, machinery, services and consultancy sourced mainly from India; at least 75 per cent of contract value must be supplied from India with up to 25 per cent procured abroad. The Credit Agreement fixes timelines for opening Letters of Credit and disbursement, requires GR/SDF shipment declarations, disallows agency commission under the LOC while permitting exporter-funded commission remittances, and instructs AD Category-I banks to notify exporters; directions issued under FEMA.

Line of credit for export finance establishes procurement, content and disbursement conditions for a Mozambique project.
Exim Bank made a Line of Credit to Mozambique for the Rural Drinking Project Extension, requiring that eligible goods, services and consultancy qualifying under India's Foreign Trade Policy supply at least 75% of the contract value from India (up to 25% from outside). The Credit Agreement effective October 4, 2013 prescribes disbursement cut offs: 48 months from scheduled project completion for project exports and 72 months from agreement execution for supply contracts; shipments must be declared on GR/SDF Forms. No agency commission is payable under the LOC; exporters may use own funds or EEFC balances for commission remittance after realisation. AD Category I banks must inform exporters; directions issued under FEMA sections 10(4) and 11(1).

Special Currency Basket revision notified to authorised dealers, requiring implementation of the revised exchange valuation for deferred settlements.
Revision of the Rupee value of the Special Currency Basket for settlement under the Deferred Payment Protocols is notified to Authorised Dealer Category I banks, effective October 17, 2013. AD Category I banks must inform their constituents and implement the revised valuation for bilateral deferred payment settlements. The Directions are issued under FEMA (sections 10(4) and 11(1)) and are without prejudice to other statutory permissions or approvals.