Foreign Exchange Management (Deposit) (Amendment) Regulations, 2018

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....l 1, 2016, namely: 1. Short Title and Commencement: (i) These regulations may be called the Foreign Exchange Management (Deposit) (Amendment) Regulations, 2018. (ii) These regulations shall come into force from the date of their publication in the Official Gazette. 2. Amendment to Regulation 7: In Regulation 7, after the existing sub-regulation (4), the following shall be added, namely: "5. An Authorized Dealer in India may allow a Foreign Portfolio Investor and a Foreign Venture Capital Investor, both registered with the Securities and Exchange Board of India (SEBI) under the relevant SEBI regulations to open and maintain a non-interest bearing foreign currency account for the purpose of making investment in accordance wi....

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..... Such accounts can be opened by Authorised Dealers only," 4. Amendment to Schedule 4: In Schedule 4, for the existing paragraph 8, the following shall be substituted, namely: "The tenure of the SNRR account should be concurrent to the tenure of the contract/ period of operation/ the business of the account holder and in no case should exceed seven years. Approval of the Reserve Bank shall be obtained in cases requiring renewal : Provided the restriction of seven years shall not be applicable to SNRR accounts opened by a person resident outside India for the purpose of making investment in India in accordance with Foreign Exchange Management (Transfer or issue of security by a person resident outside India) Regulations, 2017, as....

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....e. 2. By resident and non-resident acquirers for acquisition/ transfer of capital instruments/convertible notes a. Permitted Credits in the Escrow account are: i. Foreign Inward remittance through banking channels; ii. Receipt of rupee consideration through banking channels by the resident acquirer of capital instruments/convertible notes who proposes to acquire from non-resident holders by way of transfer. iii. by way of a guarantee issued by an authorised dealer bank subject to terms and conditions as specified in the Foreign Exchange Management (Guarantee) Regulations 2000, as amended from time to time. b. Permitted debits in the Escrow account are: i. Remittance of consideration for issue/ tr....

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....agement (Transfer or Issue of Security by a person resident Outside India) Regulation 2017, as amended from time to time and Security Exchange Board of India (Substantial Acquisition of Shares and Takeover) Regulations, 1997 [SEBI (SAST) Regulations] or other relevant regulations issued by the SEBI. 4. The Escrow account shall be non-interest bearing. 5. No fund or non-fund based facilities would be permitted against the balances in the Escrow account. 6. Requirement of compliance with KYC guidelines issued by the Reserve Bank shall rest with the Authorised Dealer. 7. Balance in the Escrow account, if any, may be repatriated at the then prevailing exchange rate (i.e., the exchange rate risk will be borne by the person resident o....