Foreign Exchange Management (Transfer or Issue of any Foreign Security) (Third Amendment) Regulations, 2014.

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....ement (Transfer or Issue of Any Foreign Security) Regulations 2004 (Notification No. FEMA.120/RB-2004 dated July 7, 2004), as amended from time to time, (hereinafter called the Principal Regulations or the Notification), namely:- 1. Short Title & Commencement:- (i) These Regulations shall be called the Foreign Exchange Management (Transfer or Issue of Any Foreign Security) (Third Amendment) Regulations, 2014. (ii) They shall come into force from the date of publication in the Official Gazette. 2. Amendment to Regulation 18 The existing Regulation 18 shall be substituted with the following, namely: "18. Pledge of Shares of Joint Venture (JV), Wholly Owned Subsidiary (WOS) and Step down Subsidiary (SDS) An Indian Party ma....

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....curity for availing of the fund based and/or non-fund based facility for its Joint Venture (JV) or Wholly Owned Subsidiary (WOS) or Step Down Subsidiary (SDS) outside India. Provided that (a) The value of the facility is reckoned as financial commitment for the Indian party and the total financial commitment of the Indian party remains within the limit stipulated by the Reserve Bank from time to time for overseas direct investments in the JV / WOS; (b) The overseas lender is regulated and supervised as a bank as per the law of the host country; (c) A 'No Objection' is obtained from the domestic lender in whose favour if charge is already created on the domestic assets; and (d) Subject to the additional terms and conditions pr....