Adjudication under foreign exchange law: designated officers authorised to adjudicate repealed-act contraventions and continue enforcement.
Designates specified Central Government officers as adjudicating officers authorised to adjudicate contraventions under the repealed Foreign Exchange Regulation Act and related rules, excluding certain specified provisions, pursuant to powers under the repealed Act read with transitional provisions of the Foreign Exchange Management Act, 1999; authorisation applies to cases assigned by the Directorate of Enforcement and validates continuity of enforcement actions initiated under the repealed regime.

Retention of duplicate export declaration forms required upon realisation of export proceeds by authorised dealers.
The Reserve Bank of India amended Regulation 6 of the Export Regulations to require that, upon realisation of export proceeds, duplicate declaration forms (GR, PP and SOFTEX), Exchange Control copies of shipping bills and related Statutory Declaration Forms shall be retained by Authorised Dealers.

Purpose of Remittance amendment limits remittance purpose to payments for imports via ocean transport, altering remittance scope.
Amendment adds the words "through ocean transport" after "Payment of import" in item 4 of Schedule II to the Foreign Exchange Management (Current Account Transactions) Rules, 2000, thereby limiting that purpose of remittance to import payments effected via sea transport; enacted by the Central Government under FEMA following consultation with the monetary authority and effective on publication in the Official Gazette.

Multilateral Development Bank access to Government securities permitted, with payment and repatriation conditions under RBI approval.
A Multilateral Development Bank specifically permitted by the Government of India to float rupee bonds may purchase Government dated securities. Payment for such purchases must be by inward remittance through normal banking channels or from funds in an account opened with specific Reserve Bank of India approval. On sale or maturity, the net proceeds after tax may be remitted abroad or credited to a fund account opened with prior RBI permission.

Foreign exchange derivative regulation amendment broadens eligibility to parties permitted by the Reserve Bank under Schedule Three of the regulations.
The amendment inserts the phrase "or as permitted by the Reserve Bank" into Schedule III, paragraph 1 of the Foreign Exchange Management (Foreign exchange derivative contracts) Regulations, 2000, thereby extending eligibility to enter foreign exchange derivative contracts beyond those engaged in export-import trade to include persons authorised by the Reserve Bank. The regulation, titled the Fourth Amendment Regulations, 2003, comes into force on publication in the Official Gazette and is made under Section 47(2)(h) of the Foreign Exchange Management Act, 1999.

Foreign exchange hedging: expanded permission for residents and non residents to use forwards and cross currency contracts for specified exposures.
Residents in India may, subject to Reserve Bank of India terms and conditions, enter into forward contracts with authorised dealers to hedge exchange risk on transactions denominated in foreign currency but settled in Indian rupees. Non resident Indians may, under RBI conditions, enter into cross currency forwards (excluding the rupee) to convert FCNR(B) balances between permitted foreign currencies. Persons resident outside India may, subject to RBI conditions, enter forward sale contracts to hedge currency risk on proposed foreign direct investment, and non resident investors may take forward cover including the rupee to hedge dividends where the rate is Board approved.

Foreign property acquisition: regulatory authority may permit Indian companies with overseas offices to buy immovable property abroad for staff housing.
The amendment inserts a new sub-regulation empowering the central monetary authority to permit, on application, companies incorporated in India that have overseas offices to acquire immovable property outside India for business purposes and for residential use by their staff, subject to such terms and conditions as the authority may consider necessary.

Exemption for SEZ units: SEZ branches may be established without prior RBI approval subject to sectoral FDI, Companies Act compliance, and stand-alone operation.
The Regulations add a stand alone basis definition to restrict specified branch offices to Special Economic Zones and exempt companies from prior RBI approval to establish branches or units in SEZs for manufacturing and services, provided they operate in sectors permitting full FDI, comply with Companies Act corporate and winding-up provisions, function on a stand-alone basis, and use an Authorised Dealer with required documents for remittance of winding-up proceeds.

Withdrawal of OCB general permission restricts OCB banking and investment privileges and mandates account closure and repatriation.
The Regulations withdraw the general permission for Overseas Corporate Bodies (OCBs) to transact under FEMA, prohibit opening new accounts and new investments, require closure or conversion of specified existing accounts with repatriation or restricted disposal of balances, bar residents from borrowing from or lending to OCBs and prevent renewal of outstanding loans, while permitting limited forward contract hedges for specified existing investments and account balances and amending FEMA regulations to delete OCB references.

Entity incorporated outside India definition tightened, narrowing regulatory reference to incorporated foreign entities in securities transfers.
The amendment inserts a definition that entity incorporated outside India means an entity incorporated or registered under the host country's statutes or laws, and substitutes wording in an operative provision to replace a broader reference to entities outside India "whether incorporated or not" with the narrower phrase "entity incorporated outside India", thereby focusing the Regulations on incorporated/registered foreign entities.

Current account transaction limits under foreign exchange rules increased, expanding permissible remittance ceilings for specified items.
Central Government amends Schedule III of the Foreign Exchange Management (Current Account Transactions) Rules, 2000, substituting higher dollar limits in item Numbers 5, 6, 7 and 10, thereby revising permissible ceilings for specified current account remittances. The amendment is made under sections 5 and 46 of the Foreign Exchange Management Act, 1999, in consultation with the Reserve Bank, and is titled the Third Amendment Rules, 2003, coming into force upon publication in the Official Gazette; item Number 15's published substitution appears numerically unchanged.

Export realisation and repatriation exemption: SEZ exports relieved from specified repatriation period under amended FEMA regulations.
Regulation 9 is amended to exempt Special Economic Zone units from the stipulated period for realisation and repatriation of full export value of goods or software; clause (2)(a) has the SEZ reference removed and clauses (2)(b) and (2)(c) substitute 'the said exporter/s' for 'unit'.

Payment in precious metals permitted for SEZ and EOU gem and jewellery exports where contract and declaration requirements are met.
The Reserve Bank amended the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2000 to permit receipts in the form of precious metals (gold, silver, platinum) equivalent to the value of jewellery exported by Gem & Jewellery units in Special Economic Zones and Export Oriented Units, provided the sale contract so provides and the value is declared in the relevant GR / SDF / PP forms.

Remittance limits updated: higher permissible annual transfers from NRO accounts and inherited assets, subject to documentation and routing rules.
Regulations raise the ceiling for annual remittance by NRIs/PIOs to US$ 1,000,000 from NRO account balances, sale proceeds and inherited assets, subject to documentary proof of acquisition or inheritance; instalments must be remitted through the same authorised dealer. Remittances above US$ 1,000,000 per calendar year are addressed separately for legacies or inheritances to non-resident citizens and for NRIs/PIOs from NRO balances or sale proceeds, with a ten-year cumulative holding requirement for immovable property sale proceeds.

Remittance of Assets regulation amendment under FEMA narrows 'branch/office' to exclude project offices, effective on publication.
The Reserve Bank of India amends the Remittance of Assets Regulations by inserting that the term 'branch/office' in regulation 6(1)(iii) does not include a project office; the Amendment takes effect on publication in the Official Gazette and modifies the earlier Notification No. FEMA.13/2000-RB in respect of that provision.

Project Office Establishment: foreign firms may open project offices only under specified funding or clearance conditions with mandatory RBI reporting.
The Regulations permit a foreign company to open a Project Office in India only if it has a contract with an Indian company and the project is funded by inward remittance, funded by a bilateral or multilateral international financing agency, cleared by an appropriate authority, or the contracting Indian entity has been granted a term loan by a public financial institution or bank; the foreign company must report specified company and project details to the Reserve Bank regional office and the Project Office may undertake only activities related and incidental to project execution.

Foreign investment transfer restrictions clarified; bonus shares repatriability, FC GPR reporting and prior permission conditions revised for non residents and NRIs under FEMA
Amendments add an NRI definition, permit bonus shares to non resident shareholders only if original shares were acquired per applicable rules and subject bonus shares carry the same repatriability conditions; require companies issuing rights or bonus shares to report within thirty days in Form FC GPR; revise transfer rules so non residents may transfer to non residents generally while NRIs/OCBs may transfer only to other NRIs/OCBs, subject to prior Central Government permission where the transferee has prior ventures or tie ups in the same or allied field, with exceptions for specified international financial institutions and the IT sector.

Foreign diplomatic property purchase rules require government clearance and foreign funds remitted through banking channels for transactions.
Regulation 5A authorises Foreign Embassies, Diplomats and Consulate Generals to purchase or sell immovable property in India other than agricultural land, plantation property or farm houses, provided they obtain clearance from the Government of India, Ministry of External Affairs and pay the consideration from funds remitted from abroad through the banking channel.

Foreign currency account limit amended to raise the prescribed figure under the governing FEMA regulations, effective on publication.
Amendment substitutes the prior numeric figure in paragraph 1(1), item 2 of the Schedule to the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2000 with a higher prescribed figure, thereby altering the operative threshold for foreign currency accounts held by persons resident in India; the change is effected under powers of the Foreign Exchange Management Act and takes effect on publication in the Official Gazette.

Cross-border insurance holdings allowed with prior permission; repatriation of proceeds required through banking channels within specified period.
Residents may take or continue to hold foreign-issued general insurance only with Central Government permission and foreign-issued life insurance only with Reserve Bank permission; continuation is allowed where policies were acquired while non-resident. If premiums were remitted from India, maturity proceeds or claim amounts must be repatriated to India through normal banking channels within seven days of receipt.