Foreign Exchange Management (Transfer or Issue of any Foreign Security) (Second Amendment) Regulations, 2009

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....gement (Transfer or Issue of any Foreign Security) Regulations, 2004 (Notification No. FEMA 120/RB-2004 dated July 7, 2004), namely:- 1. Short title and commencement. - (a) These Regulations may be called the Foreign Exchange Management (Transfer or Issue of any Foreign Security) (Second Amendment) Regulations, 2009. (b) They shall be deemed to have come into force from the dates specified in these regulations. 2. Amendment to Section 2. - In the Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004 (Notification No. FEMA 120/RB-2004 dated July 7, 2004) (hereinafter referred to as 'the principal regulations), in regulation 2. (i) after clause (r), the following shall be inserted and shall be deemed to....

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.... IV with the specific approval of the Reserve Bank." 4. Insertion of new schedule. - After Schedule III of the principal regulations, the following new Schedule shall be inserted and shall be deemed to have been inserted with effect from September 23, 2008 namely:- "Schedule IV [See Regulation 21 (2)] Foreign Currency Exchangeable Bonds (FCEBs) 1. Currency :- The FCEB may be denominated in any freely convertible foreign currency. 2. Eligible Issuer. - The issuing company shall be part of the promoter group of the offered company and shall hold the equity shares being offered at the time of issuance of FCEB. 3. The Offered Company. - The Offered Company shall be a listed company which is engaged in a sector eligible to receive Foreign....

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....not be permitted to utilize the proceeds for investment in the capital market or in real estate in India. 10. All-in-cost. - The rate of interest payable on FCEB and the issue expenses incurred in foreign currency shall be within the all-in-cost ceiling as provided in the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000 (Notification No. FEMA 3/2000-RB, dated May 3, 2000) and the direction issued in that behalf by the Reserve Bank of India. 11. Pricing of FCEB. - At the time of issuance of FCEB, the exchange price of the offered listed equity shares shall not be less than the higher of the following two: (i) The average of the weekly high and low of the closing prices of the shares of the offered c....