Special currency basket valuation revised, requiring AD Category I banks to adopt updated rupee conversion and notify constituents.
Revision of the rupee valuation of the special currency basket to Rs.60.897378 effective April 09, 2010, replacing the earlier value of Rs.63.0381 from March 11, 2010, and directing Authorised Dealer Category I banks to apply the revised conversion rate and notify their constituents. The circular is issued under FEMA sections 10(4) and 11(1) and does not affect other permissions or approvals required under any other law.

Collateral eligibility for FIIs expanded to include domestic government securities and AAA sovereign bonds for cash-segment trades.
Permits FIIs to post domestic Government Securities (acquired pursuant to Schedule 5 to FEMA 20/2000 and subject to SEBI limits) and AAA-rated foreign sovereign securities, in addition to cash, as collateral for cash-segment transactions; prohibits cross-margining of Government Securities between cash and derivative segments; SEBI will issue operational guidelines and FEMA 20/2000 will be amended accordingly.

Special currency basket valuation revised; authorised dealer banks directed to adopt updated rupee conversion under FEMA.
The rupee valuation of the special currency basket has been revised and fixed with effect from the stated March 2010 implementation date; AD Category I banks are instructed to adopt the revised rupee value for relevant transactions and to notify their constituents. The circular's directions are issued under the Foreign Exchange Management Act and do not affect permissions or approvals under other laws.

Overseas investment liberalisation permits Indian companies to join submarine cable consortia under automatic route subject to licensing and reporting.
Indian companies may participate in consortia to construct and maintain submarine cable systems on a co-ownership basis under the automatic route provided they hold a Department of Telecommunication licence for International Long Distance services and submit a certified Board Resolution. AD Category I banks must verify these documents, report investments in the format of A.P. (DIR Series) Circular No. 68, and report to the Reserve Bank for allotment of a Unique Identification Number; such investments remain subject to the reporting obligations under the FEMA notification.

Consolidated FDI Policy sets routes, sectoral caps, reporting rules and penalties for foreign investments in India.
The Consolidated FDI Policy (effective 1 April 2010) consolidates FEMA/RBI/DIPP rules into a unified framework defining FDI, entry routes (Automatic and Government), calculation of direct and indirect foreign investment (including downstream investments and ownership/control tests), sectoral prohibitions and caps, permitted instruments and pricing norms, transfer and reporting requirements (FC-GPR, FC-TRS, DR returns, KYC) through AD Category-I banks, and enforcement mechanisms under FEMA including penalties, adjudication and compounding.

Buyback of Foreign Currency Convertible Bonds allowed via approval route, subject to prior circular conditions and documentation.
Applications for buyback or prepayment of Foreign Currency Convertible Bonds (FCCBs) will be considered under the approval route until June 30, 2010, provided issuers comply with the terms and conditions in A.P. (DIR Series) Circular Nos. 39 (Dec 8, 2008) and 65 (Apr 28, 2009). Applications with supporting documents must be submitted via designated AD Category I banks to the Reserve Bank of India's Foreign Exchange Department. AD Category I banks should inform affected constituents. Directions are issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999, without prejudice to other statutory permissions.

Special currency basket revision directs authorised dealer banks to adopt new rupee valuation and notify constituents under FEMA powers.
Revision of the special currency basket valuation fixes the rupee value at Rs.65.29 effective January 11, 2010, superseding earlier indications; AD Category I banks are directed to notify their constituents. The Directions are issued under FEMA and are without prejudice to permissions under other laws.

Line of credit for project exports requires majority India-sourced supplies and FEMA compliance, with specified documentation and timelines.
Export-Import Bank of India extended a Line of Credit to the Government of the Republic of Zambia to finance eligible goods and services, including consultancy from India, for the Itezhi-Tezhi hydro power project. The facility requires at least 85 per cent of contract value to be supplied from India, permits the remaining 15 per cent (excluding consultancy) to be procured abroad, mandates GR/SDF shipment declarations, disallows agency commission under the LOC (subject to exporter-funded commission arrangements), and is issued under sections 10(4) and 11(1) of FEMA.

Government-route FDI approval levels revised; ministerial review for mid-level cases, higher cases referred to executive committee.
The Government revised approval levels for Government-route FDI: FIPB recommendations up to a mid-level threshold will be considered by the Minister of Finance (in-charge of FIPB) and recommendations above that threshold will be placed before the Cabinet Committee on Economic Affairs, with the FIPB Secretariat in DEA processing recommendations. Additionally, fresh prior approval is not required for further foreign investment into the same entity where the sector or caps have been moved to the automatic route or increased and the total investment remains within caps, or where earlier approvals were obtained under prior press notes and no other approval requirement exists.

Line of Credit conditions require substantial Indian supply, specified LC/disbursement timelines, documentation and agency commission restrictions.
Provision of a Line of Credit of USD 15 million to finance eligible goods, machinery, equipment and services from India, requiring a substantial proportion of contract value to be supplied from India while allowing limited non Indian procurement for non consultancy items. The Credit Agreement sets distinct LC and disbursement timelines for project exports and supply contracts; shipments must be declared on prescribed GR/SDF forms. Agency commission is not payable under the LOC, though exporters may remit commission from their own funds or exchange earnings balances subject to realization and prevailing instructions, and Authorized Dealer Category I banks must notify exporters and ensure compliance.

External Commercial Borrowings policy extends credit enhancement to domestic infrastructure debt, including maturity, fee, and cost caps.
Credit enhancement by eligible non-resident entities is permitted for domestic rupee denominated capital market instruments issued by infrastructure companies and RBI classified Infrastructure Finance Companies, subject to conditions: providers limited to multilateral/regional and government development institutions; minimum average maturity of seven years; no prepayment or call/put options up to seven years; guarantee fees capped at 2%; invocation and novation to eligible non-residents subject to applicable all in cost ceilings; IFCs must meet eligibility/prudential norms and fully hedge foreign currency designation; ECB reporting rules apply.

External Commercial Borrowings for Infrastructure Finance Companies allowed under approval route, subject to full currency hedging and indebtedness limits.
Infrastructure Finance Companies classified by the Reserve Bank may obtain External Commercial Borrowings under the approval route for on lending to the infrastructure sector, provided they comply with DNBS circular norms, fully hedge currency risk and ensure total outstanding ECBs including the proposed borrowing do not exceed fifty per cent of Owned Funds, with certification of compliance by Authorised Dealer Category I banks; other ECB policy provisions remain unchanged.

Infrastructure sector definition expanded for external commercial borrowings to include cold storage and pre cooling facilities, affecting ECB eligibility.
Expansion of the infrastructure sector for External Commercial Borrowings to include cold storage and cold room facilities, including farm level pre cooling, for preservation or storage of agricultural and allied produce, marine products and meat. All other aspects of the ECB policy, including automatic route limits, eligible borrower and lender criteria, end use, maturity, prepayment, refinancing, reporting arrangements and terms and conditions in the A.P. (DIR Series) Circulars, remain unchanged.

Line of Credit to DRC sets Indian supply content requirement and prescribed L/C and disbursement timelines.
Exim Bank's Line of Credit to the Democratic Republic of Congo finances eligible Indian exports for pump installation, mandates predominant Indian supply content with limited non Indian sourcing for non consultancy goods, prescribes separate timelines for L/C opening and disbursement for project and supply contracts, requires shipment declaration on GR/SDF forms, disallows agency commission under the LOC while permitting exporter-funded commission remittances subject to realization and prevailing rules, and directs AD Category I banks to inform exporters and obtain LOC details; issued under FEMA without prejudice to other statutory permissions.

Overseas Direct Investment online reporting mandates UIN generation and remittance reporting by authorised dealer banks; approvals and closures remain physical.
From March 2, 2010, Parts I (Sections A-D), II and III of Form ODI must be filed on-line via the Reserve Bank's Secured Internet Website by the Centralized Unit/Nodal Office of Authorised Dealer Category I banks to obtain a Unique Identification Number (UIN), report remittances and file Annual Performance Reports; AD banks retain physical ODI forms UIN wise. UINs can be generated on line under the automatic route, but subsequent remittances and approval route remittances are to be reported on line in Part II only after RBI confirms the UIN. Approval-route applications and Part IV closure/disinvestment filings remain physical submissions.

ACU settlement mechanism: channel ACU denominated cross border payments via AD Category I banks with central bank funding oversight.
Revised procedure requires AD Category I banks to channel eligible current international transactions through ACU using distinct ACU Dollar and ACU Euro accounts, treating such transactions like other foreign exchange business. RBI facilitates funding and repatriation by receiving/delivering US Dollar and Euro to/from AD Category I banks only upon confirmation of corresponding credits to RBI's correspondent accounts; AD Category I banks must remit/deliver amounts on the value date and face penal interest for defaults. All ACU operations remain subject to FEMA regulations and the Memorandum's procedural and documentation requirements.

Line of Credit financing for agriculture and food processing projects enables India-sourced exports subject to specified supply and disbursement rules.
Exim Bank provided a Line of Credit to the Government of Mali to finance agriculture and food processing projects by procuring eligible goods, machinery, equipment and consultancy services from India; at least 85 percent of the contract price must be supplied by the seller from India and up to 15 percent (other than consultancy services) may be procured from outside India, with shipments declared on GR/SDF forms and Letters of Credit and disbursements subject to the Agreement's prescribed timelines.

External Commercial Borrowings liberalisation lets authorised dealer banks approve specified post-registration changes under prescribed safeguards.
Designated Authorised Dealer Category-I banks are authorised to approve specified post-LRN modifications to External Commercial Borrowings: changes to drawdown and repayment schedules provided the declared average maturity is maintained (with elongation beyond original maturity requiring prior RBI approval) must be reported to DSIM in Form 83; changes in currency of borrowing are permitted if the proposed currency is freely convertible and other ECB terms remain unchanged; change of designated AD bank is allowed on production of a No-Objection Certificate and after due diligence; name changes are permitted on Registrar of Companies evidence. Other ECB conditions remain unchanged.

Line of Credit for export financing enables India origin exports under conditional disclosure and agency commission rules.
Exim Bank's Line of Credit to Vnesheconombank, Russia finances exports eligible under India's Foreign Trade Policy. The Credit Agreement is effective from January 18, 2010, with the terminal date for opening Letters of Credit on January 17, 2013, and for disbursements on July 17, 2014. Shipments must be declared on GR/SDF forms. Agency commission is ordinarily not payable, but Reserve Bank may permit up to 5% for exports requiring after sales service; such commission must be deducted from the invoice and prior approval obtained from the relevant Foreign Exchange Department. Exporters may use own funds or EEFC balances for commissions where applicable, and AD Category I banks should inform exporters and comply with prevailing instructions. Directions issued under FEMA provisions remain subject to other statutory permissions.

Line of Credit enables procurement of eligible Indian goods and services for Mali under specified supply, documentation, and FEMA compliance.
Exim Bank's Line of Credit to Mali finances eligible Indian goods, machinery, equipment and consultancy services for the interconnection project; at least 85% of contract value must be supplied from India while up to 15% (excluding consultancy) may be 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 (though exporters may use own funds or EEFC balances subject to remittance rules), and implements these directions under FEMA.