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Circular

NTF. NO. FEMA 85/2003-RB, DT. 17/01/2003

Document type
Circular
Dated

Exchange Trade Derivative Contracts-FIIs and NRIs permitted to Trade in such Contracts

Notification No. FEMA 85/2003-RB Date 17/01/2003

Exchange Trade Derivative Contracts-FIIs and NRIs permitted to Trade in such Contracts

Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) First Amendments) Regulation, 2003

G.S.R.225 (E)-In exercise of the powers conferred by clause (b) of Sub-section (3) of Section 6 Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999) and in partial modification of its Notification No. FEMA 20/2000-RB dated 3rd May, 2000, the Reserve Bank of India makes the following Regulation to amend the Foreign Exchange Management (Transfer of Issue of Security by a person Resident outside India) Regulation, 2000, namely:-

(7) Short title and commencement
    (7) These Regulations may be called the Foreign Exchange Management (Transfer or Issue of Security by a person Resident outside India) (First Amendment) Regulation, 2003.

    (7) They shall come into force on their publication in the Official Gazette.
(7) Amendment of the Regulation
    (7) In the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulation, 2000 (hereinafter referred to as “the Principal Regulation”) in Regulation 5, after Sub-Regulation (5), the following Sub-Regulation shall be added, namely;

    “(6) A registered Foreign Institutional Investor (FII) having valid approval under FERA, 1973 or under FEMA 1999 may trade in all exchange traded derivative contracts approved by SEBI from time to time subject to the limits as prescribed in by SEBI.

    (7) A Non-Resident Indian (NRI) may invest in exchange traded derivative contracts approved by SEBI from time to time out of INR funds held in India on non-repatriable basis subject to the limits prescribed by SEBI. Such investments will not be eligible for repatriation benefits.”

Sd/-
K.J. Udeshi, Excutive Director


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