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Foreign Exchange Management (Borrowing and lending) (Amendment) Regulations, 2019
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Rupee repo and reverse repo transactions permit non-residents to borrow or lend subject to regulatory conditions.
Paragraph 7-A permits a person resident outside India to undertake rupee-denominated repo or reverse repo transactions to borrow or lend money, subject to terms and conditions specified by the Reserve Bank. Repo and reverse repo have the meanings assigned under the Reserve Bank of India Act, 1934. The amendment takes effect upon publication in the Official Gazette.
Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) (Amendment) Regulations, 2019
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Derivative access for non-residents: exchange-traded derivatives allowed under SEBI limits; FPIs permitted interest-rate derivatives under RBI conditions.
The amendment deletes the Note to clause 5 and inserts clauses allowing non-residents to use derivatives: clause (5)(a) permits FPIs, NRIs and OCIs to trade or invest in SEBI-approved exchange-traded derivatives subject to SEBI-prescribed limits and Schedule 5 conditions; clause (5)(b) permits FPIs to enter into interest rate derivatives subject to conditions specified by the Reserve Bank of India.
List of agencies of the United Nations, and other international agencies and organisations notified by the Central Government to be not covered by the definition of 'foreign source', under section 2(1)(j)(ii) of the Foreign Contribution (Regulation) Act, 2010
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Non-recognition of foreign source: three multilateral development banks are specified as not 'foreign source' under FCRA.
The Central Government notifies that certain international organisations shall not be treated as 'foreign source' under the Foreign Contribution (Regulation) Act, specifying the Asian Infrastructure Investment Bank, New Development Bank and European Bank for Reconstruction and Development as excluded from the statutory definition and thus not subject to the regulatory treatment applicable to foreign sources under the Act.
Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Amendment) Regulations, 2019
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E-commerce marketplace regulation: prohibiting inventory control and price influence to ensure fair, non-discriminatory vendor access.
Regulatory amendments impose operational limits on e-commerce marketplace entities with foreign investment: marketplaces must not control vendor inventory (control is presumed when a substantial share of vendor purchases originate from the marketplace or its group), entities with marketplace equity or inventory control cannot sell on that marketplace, marketplaces must not influence sale prices, and services provided by marketplaces or their group to vendors must be at arm's length, fair and non-discriminatory. Seller exclusivity is prohibited and existing investments must comply from the notification date.
Foreign Exchange Management (Establishment in India of a branch office or a liaison office or a project office or any other place of business) (Amendment) Regulations, 2019
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Project office approvals are streamlined where government permissions exist, including defence projects backed by specified contracts or agreements.
Project office approvals for non-resident entities are streamlined by removing the requirement for Reserve Bank approval where the concerned Ministry or regulator has already granted Government approval, licence or permission. For defence-sector project offices, no separate Government reference or approval is required where the non-resident applicant has a contract with, or agreement involving, the Ministry of Defence, Service Headquarters or Defence Public Sector Undertakings.

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Acts Income Tax