Amendment to export regulations removes a specific clause in Regulation 4, altering regulatory obligations for exporters.
Amendment deletes clause (h) of Regulation 4 in the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, as a partial modification of Notification No. FEMA.23/2000-RB. Titled the Foreign Exchange Management (Export of Goods and Services) (Second Amendment) Regulations, 2015, the amendment takes effect on publication in the Official Gazette and removes the specified sub-clause without adding replacement text.

Employees' stock options and sweat equity may be issued to non-resident employees subject to sectoral caps and approval requirements.
The substituted Regulation 8 permits an Indian company to issue employees' stock options and/or sweat equity shares to non-resident directors or employees of the company, its holding company, joint venture or wholly owned overseas subsidiaries provided the scheme complies with applicable securities or companies rules, issuances to non-residents conform to the sectoral foreign investment cap, issuances in companies under the approval route require prior foreign investment approval, issuances to certain foreign nationals require prior approval, and the Reserve Bank may mandate reporting by the issuing company.

Foreign exchange drawal limits permit resident individuals higher annual access for specified capital account transactions, subject to remittance restrictions.
Resident individuals may draw foreign exchange through an authorised person up to USD 250,000 per financial year for specified capital account transactions, subject to applicable foreign exchange law and regulatory directions. Relevant current account drawals are included within this annual limit. Where a capital account drawal exceeds the annual limit, the transaction-specific regulatory limit applies to the excess. The permitted foreign exchange cannot be used directly or indirectly for remittances to Financial Action Task Force-notified non-cooperative countries and territories.

Prior approval for specified current account transactions now required; individuals limited by liberalised remittance scheme and corporates need regulatory approval.
The amendment replaces rule 5 to require prior regulatory approval for foreign exchange drawals listed in a new Schedule III, except when paid from Resident Foreign Currency Accounts. Schedule III permits individuals to remit under the Liberalised Remittance Scheme for specified current account purposes, with excess remittances for certain purposes requiring prior regulatory approval and reductions of the annual limit by amounts already remitted. It also lists categories of remittances by non individuals that mandate prior regulatory approval and aligns procedural requirements with the Liberalised Remittance Scheme.

Exporter declaration requirement now mandatory for exports through customs manual ports; specified forms and evidence required.
Regulation 3(1) is substituted to require every exporter through Customs manual ports (excluding Nepal and Bhutan) to furnish to the specified authority a declaration in a Schedule form supported by specified evidence, containing true and correct material particulars including the amount representing exports. The amendment deletes the word "SDF" from Regulation 6 and removes Form SDF from the Schedule, withdrawing the duplicate Form SDF previously appended to shipping bills at Customs Offices with EDI processing.

Foreign investment cap in insurance set below half; automatic entry to lower threshold, government route required up to the cap.
Regulations amend Annex B to impose a 49 per cent combined foreign investment cap for insurance companies and designated intermediaries, allow investment on an automatic route up to a lower threshold with Government approval required for increases beyond that automatic threshold up to the cap, and require RBI-IRDA consultation for FDI in private banks with insurance JV/subsidiaries to ensure the insurance sector cap is not breached; compliance with Insurance Act, IRDA licensing, Indian ownership and control, portfolio investment rules and RBI pricing guidelines is mandated.

IFSC financial institutions treated as non-residents; permitted to transact in foreign currency under regulator oversight.
Financial institutions established in an IFSC and recognised by the Government or a Regulatory Authority are treated as persons resident outside India, permitted to conduct business in foreign currency and with such persons as the concerned Regulatory Authority determines, and, subject to the Act, are not bound by other Indian foreign exchange regulations unless expressly provided otherwise.

NRI subscription rights to chit funds permitted on a non repatriation basis through normal banking channels, without limit.
The amendment inserts sub paragraph (2C) in Schedule 5 permitting a Non resident Indian to subscribe, without limit and on a non repatriation basis, to chit funds authorised by the Registrar of Chits or an officer authorised by the State Government, provided such subscriptions are made through normal banking channels.

Non-resident Indian chit fund subscriptions become permissible through banking channels on a non-repatriation basis, subject to regulatory conditions.
Non-resident Indian subscription to chit funds is permitted when authorised by the Registrar of Chits or a State Government-authorised officer in consultation with the concerned State Government. Subscription must be made through banking channels on a non-repatriation basis and is not subject to an investment limit, subject to conditions prescribed by the Reserve Bank of India. Regulation 4(b) is amended to insert this additional explanation.

Foreign investment restriction: citizens of specified countries require RBI permission to acquire or transfer immovable property in India.
Amendment replaces Regulation 7 to require prior Reserve Bank permission for acquisition or transfer of immovable property in India by citizens of specified foreign jurisdictions, with an exception limited to short term leases; the amendment takes effect on publication and is issued under statutory powers conferred by the Foreign Exchange Management Act.

FDI in pharmaceuticals: full automatic-route for greenfield, brownfield subject to government approval and conditions.
Amendments distinguish greenfield and brownfield pharmaceutical FDI: greenfield manufacturing permitted full FDI under the automatic route; brownfield requires government approval and may attract conditions at approval. Non-compete clauses are disallowed except with FIPB approval and applicants must provide a certificate with FIPB application. Medical devices manufacturing is exempt from brownfield conditions and allowed full automatic route FDI, with a detailed definition of medical device subject to amendment under the Drugs and Cosmetics Act.