Foreign currency account credits now include gifts, export earnings, royalties and ADR/GDR disinvestment proceeds under approved scheme.
The amendment permits credits to foreign currency accounts of residents as gifts from a close relative (defined by reference to the Companies Act), as earnings from export of goods or services or as royalty, honorarium or other lawful means, and as disinvestment proceeds on conversion of shares to ADRs/GDRs under the Sponsored ADR/GDR Scheme approved by the Foreign Investment Promotion Board, by inserting these clauses into Regulation 5A(1) and adding a corresponding entry to the Schedule.

Foreign exchange current account rules adjust export commission and salary provisions for non-permanent residents and deputation employees.
The rules amend Schedule I to substitute the item on payment of commission on exports under the Rupee State Credit Route, permitting commission subject to a specified exception for certain commodities. Schedule III item 7 is amended by replacing clause (i) to cover net salary of persons who are resident but not permanently resident and who are either citizens of a foreign State other than Pakistan or Indian citizens on deputation to a foreign company's office, branch, subsidiary or joint venture in India; the Explanation substitutes "employment of deputation of" for "employment of."

Foreign currency account eligibility expanded to include deputation-based Indian citizens abroad and foreign nationals resident in India.
The amendment to Regulation 7(8) broadens eligible persons for foreign currency accounts by substituting the prior phrase limited to foreign nationals resident in India on deputation with wording that also expressly includes Indian citizens employed by a foreign company outside India who are on deputation; the amendment takes effect on publication in the Official Gazette and partially modifies the Principal Regulations under FEMA.

Direct investment in overseas equity permitted for resident individuals, listed companies and mutual funds subject to ownership and routing conditions.
Adds Regulation 6A permitting resident individuals, listed Indian companies and registered mutual funds to invest in shares of listed overseas companies that hold a minimum shareholding in any listed Indian company, subject to limits-listed Indian companies capped by a percentage of their latest audited net worth and mutual funds governed by securities regulator ceilings-and requiring all purchase and sale transactions to be routed through the designated branch of an authorised dealer in India.

Adjudicating Officers designation under foreign exchange law enables specified officers to adjudicate contraventions assigned by enforcement.
The Central Government authorises specified officers as Adjudicating Officers to adjudicate contraventions of the Repealed Foreign Exchange Regulation Act (excluding specified provisions), with cases assigned by the Directorate of Enforcement, thereby delegating adjudicatory functions to officers of Customs, Central Excise and Income tax to give continued effect to enforcement action under transitional provisions.

Foreign currency accounts: amendment permits such accounts with banks in India as well as outside, expanding permissible locations.
The amendment substitutes the phrase 'Foreign Currency Account with a bank outside India' in Regulation 7(5) with 'Foreign Currency Account with a bank outside or in India', thereby permitting persons resident in India to maintain foreign currency accounts with banks located in India as well as with banks located outside India; the change takes effect upon publication in the Official Gazette under powers vested by the Foreign Exchange Management Act.

Foreign investment threshold increase: caps raised and ownership limits relaxed permitting full ownership in bona fide overseas JV/WOS.
The notification amends Regulation 6 of the Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations by increasing the monetary threshold in sub regulation (2)(i), replacing sub regulation (2)(iii) to require direct investment in an overseas JV or WOS engaged in a bona fide business activity, and by revising sub regulation (3)(ii) to permit up to full ownership while omitting the prior proviso.

Access to exchange traded derivatives: FIIs may trade under regulator limits; NRIs may invest non repatriably under prescribed limits.
Permits a registered Foreign Institutional Investor with valid foreign exchange approval to trade in exchange traded derivative contracts approved by the market regulator subject to prescribed limits, and permits a Non Resident Indian to invest in such contracts out of Indian rupee funds held in India on a non repatriable basis subject to prescribed limits, with such NRI investments being ineligible for repatriation benefits.

Foreign investment commitment limits set for joint ventures and wholly owned subsidiaries; domestic monetary threshold correspondingly revised.
The Reserve Bank amends Regulation 6(2) to (i) cap total commitments in Joint Ventures and Wholly Owned Subsidiaries in Myanmar and specified SAARC countries (excluding Nepal, Bhutan and Pakistan) by imposing an annual ceiling, and (ii) raise the monetary threshold in clause (ii) previously stated as Rupees 350 crores to a higher national threshold; the amendments take effect on publication in the Official Gazette.

Foreign currency loans against FCNR(B) deposits permitted to account holders, subject to Reserve Bank guidelines and conditions.
An authorized dealer may grant foreign currency loans in India secured by funds held in FCNR (B) accounts to the account holder only, subject to guidelines issued by the Reserve Bank; this amendment adds clause (vii) to Regulation 4 and comes into force on publication in the Official Gazette.

Hedge value limit permits forward contracts up to the market value of the underlying; cancelled forwards cannot be rebooked.
Amendments require the value of the hedge not to exceed the market value of the underlying debt or equity instruments, allow forward contracts to continue to original maturity even if the underlying portfolio shrinks for reasons other than sale of securities, and authorize dealers to offer forwards to non-residents to hedge investments in India subject to exposure verification; cancelled forward contracts are not eligible to be rebooked.

Foreign currency employee loans permitted for overseas branch staff under employer staff welfare rules and applicable domestic terms.
The Amendment inserts Sub Regulation (6) in Regulation 5 permitting Indian companies to grant loans in foreign currency to employees of their branches outside India for personal purposes, provided such loans are granted in accordance with the lender's Staff Welfare Scheme/Loan Rules and other terms and conditions applicable to its staff resident in India and abroad.