Date: 2020-06-19Category: Extra OrdinaryState: Union GovernmentCountry: India
the Reserve Bank of India hereby makes the following amendments to the Foreign Exchange Management Mode of Payment and Reporting of Non Debt Instruments Regulations, 2019 Notification No FEMA 395 2019 RB dated October 17 2019 hereinafter referred to as the Principal Regulations
Executive Summary:
This notification, No. FEMA. 3951/2020-RB, amends the Foreign Exchange Management (Mode of Payment and Reporting of Non-Debt Instruments) Regulations, 2019. It modifies regulations concerning payment methods and remittance of sale proceeds for Foreign Portfolio Investors (FPIs) and investments by persons resident outside India. These amendments take effect from the date of publication in the Official Gazette.
Key Points / Main Content:
Foreign Portfolio Investors (FPI):
* **Mode of Payment:** Consideration must be paid via inward remittance from abroad through banking channels, from a foreign currency account, or a Special Non-Resident Rupee (SNRR) account.
* Foreign currency and SNRR accounts are exclusively for transactions under Schedule II.
* **Remittance of Sale Proceeds:** Sale proceeds (net of taxes) from equity instruments, REITs, InViTs, and domestic mutual funds can be remitted outside India or credited to the FPI's foreign currency account or SNRR account.
Investments by Persons Resident Outside India:
* **Mode of Payment:** Consideration should be paid via inward remittance through banking channels or swap of shares of a Special Purpose Vehicle or from NRE or FCNRB accounts. FPIs or FVCIs can use their SNRR account for trading in units of Investment Vehicles listed or to be listed on stock exchanges in India in primary issuance.
* **Remittance of Sale/Maturity Proceeds:** Sale or maturity proceeds (net of taxes) of the units may be remitted outside India or credited to the NRE, FCNRB, or SNRR account, as applicable.
Impact Analysis:
Foreign Portfolio Investors (FPIs):
* Impact: Revised regulations on payment methods and remittance of sale proceeds.
* Action Required: Ensure compliance with the updated payment and remittance procedures, particularly regarding the use of foreign currency and SNRR accounts.
Persons Resident Outside India:
* Impact: Changes to payment methods for investments and remittance of sale/maturity proceeds.
* Action Required: Adhere to the new regulations regarding acceptable payment methods (including NRE/FCNRB/SNRR accounts) and procedures for remitting proceeds.
Authorized Dealer Banks:
* Impact: Need to facilitate transactions in accordance with the amended regulations.
* Action Required: Update internal processes and ensure staff are aware of the new rules regarding payment methods and account usage for FPIs and other investors.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the Indian financial system.
Foreign Exchange Management Act, 1999: An Act of the Parliament of India to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India.
Foreign Exchange Management Mode of Payment and Reporting of Non-Debt Instruments Regulations, 2019: Regulations pertaining to the methods of payment and reporting requirements for non-debt instruments under the Foreign Exchange Management Act.
Foreign Exchange Management Mode of Payment and Reporting of Non-Debt Instruments Amendment Regulations, 2020: Amendments made in 2020 to the Foreign Exchange Management Mode of Payment and Reporting of Non-Debt Instruments Regulations, 2019.
New Delhi: The capital of India, where the Regional Director, Ajay Kumar, is located.
Mumbai, Maharashtra: City in India, location of the Central Office of the Reserve Bank of India.
Foreign Portfolio Investors: Investors who invest in assets from a foreign country.
Ajay Kumar: Regional Director at Reserve Bank of India
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-एम.एच.-अ.-19062020-220016
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CG-MH-E-19062020-220016
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असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 218] नई ददल्ली, बृहस्ट्प जतर्ार, िनू 18, 2020/ज्य ष्े ठ 28, 1942
No. 218] NEW DELHI, THURSDAY, JUNE 18, 2020/JYAISTHA 28, 1942
भारतीय ररज़र् वबकैं
(जर्देिी मद्रु ा जर्भाग)
(केंद्रीय कायालव य)
अजधसचू ना
मुंबई, 15 िून 2020
जर्देिी मद्रु ा प्रबधं (भगु तान माध्यम तथा गरै -कज़जव लखतों की ररपोर्टिंग) (सिं ोधन) जर्जनयमार्ली, 2020
स.ंफेमा. 395(1)/ 2020-आरबी.—जर्देिी मुद्रा प्रबंध अजधजनयम, 1999 (1999 का 42) की धारा-47 द्वारा
प्रदत्त िजियों का प्रयोग करते हुए भारतीय ररज़र्व बैंक एतदद्वारा जर्देिी मुद्रा प्रबंध (भगु तान माध्यम तथा गरै -कज़व
जलखतों की ररपोर्टिंग) जर्जनयमार्ली, 2019 [17 अिूबर 2019 की अजधसूचना सं.फेमा.395/2019-आरबी] (जिसे इसके
पश्चात “मूल जर्जनयमार्ली”कहा गया ह)ै को जनम्नानुसार संिोजधत करता ह,ै अथावत:-
1. संजिप्त नाम और प्रारंभ:-
(i) यह जर्जनयमार्ली जर्देिी मुद्रा प्रबंध (भुगतान माध्यम तथा गरै -कज़व जलखतों की ररपोर्टिंग) (संिोधन) जर्जनयमार्ली,
2020 कहलाएगी ।
(ii) यह जर्जनयमार्ली सरकारी रािपत्र म ेंउसके प्रकािन की तारीख से लागू होगी।
2644 GI/2020 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
2. मलू जर्जनयमार्ली के जर्जनयम 3.1 म ेंसिं ोधन
मूल जर्जनयमार्ली के जर्जनयम 3.1 म ें–
(i) अनुसूची संख्या-II में उजल्लजखत मौिूदा प्रार्धान को जनम्नजलजखत से प्रजतस्ट्थाजपत दकया िाएगा, अथावत :
II. ए. भगु तान का माध्यम
(1) प्रजतफल राजि का भगु तान जर्देि स े बैंककंग चैनल के माध्यम स े आर्क जर्प्रेषण के रूप म ें अथर्ा
अनसु चू ी-II
जर्देिी मुद्रा प्रबंध (िमा) जर्जनयमार्ली, 2016 के अनुसरण में बनाए रखे गए जर्देिी मुद्रा खाते और /
(जर्देिी
अथर्ा जर्िेष अजनर्ासी रुपया (एसएनआरआर) खाते म ेंधाररत की गई जनजधयों से दकया िाएगा।
पोटवफोजलयो
जनर्िे कों द्वारा (2) िब तक दक इस जर्जनयमार्ली अथर्ा संबंजधत अनुसूजचयों में अन्यतः जर्जनर्दष्टव नहीं दकया गया हो,
जनर्िे ) तब तक जर्देिी मुद्रा खाते और एसएनआरआर खाते का उपयोग केर्ल और अनन्य रूप से इस अनुसूची
के तहत लने देन के जलए दकया िाएगा।
बी. जबक्रीगत आय का जर्प्रषे ण
इदिटी जलखतों और भूसंपदा जनर्ेि न्यास (REIT), बुजनयादी संरचना जनर्ेि न्यास (InViT) तथा घरेल ू
म्यूचुअल फ़ंड के यूजनटों की जबक्रीगत आय (लागू करों की कटौती के पश्चात) को भारत स े बाहर जर्प्रेजषत
दकया िा सकता ह ै अथर्ा उसे संबंजधत जर्देिी संजर्भाग जनर्ेिक (एफ़पीआई) के जर्देिी मुद्रा खाते
अथर्ा एसएनआरआर खाते म ेंिमा दकया िा सकता ह।ै
(ii) अनुसूची सं.VII के पैरा ए (2) पर मौिूदा प्रार्धान को जनम्नजलजखत स ेप्रजतस्ट्थाजपत दकया िाएगा, अथावत :
“िब तक दक इस जर्जनयमार्ली अथर्ा संबंजधत अनुसूजचयों म ें अन्यतः जर्जनर्दष्टव नहीं दकया गया हो, तब तक जर्देिी मुद्रा
खाते और एसएनआरआर खाते का उपयोग केर्ल और अनन्य रूप से इस अनुसूची के तहत लने देन के जलए दकया िाएगा।’’
(iii) अनुसूची सं.VIII पर मौिूदा प्रार्धान को जनम्नजलजखत स ेप्रजतस्ट्थाजपत दकया िाएगा, अथावत:-
VIII.अनसु चू ी- ए. भगु तान माध्यम
VIII प्रजतफल राजि का भगु तान जर्दिे स े बैंककंग चैनल के माध्यम से आर्क जर्प्रेषण के रूप म ें अथर्ा दकसी
जर्िेष प्रयोिन माध्यम (एसपीर्ी) के िेयरों को स्ट्र्ैप कर के अथर्ा जर्देिी मुद्रा प्रबंध (िमा)
(भारत के बाहर
के जनर्ासी जर्जनयमार्ली, 2016 के अनुसरण में बनाए रखे गए अजनर्ासी बाह्य (एनआरई) / एफ़सीएनआर (बी)
व्यजि द्वारा खातों में धाररत की गई जनजधयों से दकया िाएगा।
दकसी जनर्िे साथ ही दकसी एफ़पीआई अथर्ा एफ़र्ीसीआई के जलए प्रजतफल राजि का भुगतान भारत में स्ट्टॉक
माध्यम म ें एक्सस्ट्चेंि पर सूचीबद्ध दकए गए अथर्ा दकए िाने र्ाले (प्राथजमक जनगवम) जनर्ेि माध्यम की यूजनटों की
जनर्िे रेडडंग के जलए उनके एसएनआरआर खाते में से दकया िाए।
बी. जबक्री स े/ पररपिता पर प्राप्त आय का जर्प्रषे ण
यूजनटों की जबक्री से / पररपिता पर प्राप्त आय (लागू करों की कटौती के पश्चात) को भारत से बाहर
जर्प्रेजषत दकया िा सकता ह ै अथर्ा उस े संबंजधत व्यजि के यथा लाग ू अजनर्ासी बाह्य (एनआरई) /
एफ़सीएनआर(बी) अथर्ा एसएनआरआर खातों में िमा दकया िा सकता ह।ै
अिय कुमार, िेत्रीय जनदेिक, नई ददल् ली
[जर्ज्ञापन-III/4/असा./72/2020-21]
“पाद रटप्पणी (फुट नोट)”
जर्देिी मुद्रा प्रबंध (भुगतान माध्यम तथा गरै -कज़व जलखतों की ररपोर्टिंग) जर्जनयमार्ली, 2019 (ददनांक 17 अिूबर 2019
की अजधसूचना सं.फेमा 395/2019-आरबी) ददनांक 17.10.2019 को िी.एस.आर. सं. 795 (ई) के माफवत सरकारी
रािपत्र में प्रकाजित की गई ह।ै[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3
RESERVE BANK OF INDIA
(Foreign Exchange Department)
(CENTRAL OFFICE)
NOTIFICATION
Mumbai, the 15th June, 2020
Foreign Exchange Management (Mode of Payment and Reporting of Non-Debt Instruments) (Amendment)
Regulations, 2020
No. FEMA. 395(1)/2020-RB.— In exercise of the powers conferred by Section 47 of the Foreign Exchange
Management Act, 1999 (42 of 1999), the Reserve Bank of India hereby makes the following amendments to the
Foreign Exchange Management (Mode of Payment and Reporting of Non-Debt Instruments) Regulations,
2019[Notification No. FEMA.395/2019-RB dated October 17, 2019] (hereinafter referred to as ‘the Principal
Regulations) namely:-
1. Short Title & Commencement
(i) These Regulations may be called the Foreign Exchange Management (Mode of Payment and Reporting of Non-
Debt Instruments) (Amendment) Regulations, 2020.
(ii) They shall come into force from the date of their publication in the Official Gazette.
2. Amendment to Regulation 3.1 of the Principal Regulations
In Regulation 3.1 of the Principal Regulations-
(i) The existing provision at Sl. No. II shall be substituted by the following, namely:
II. Schedule II (Investments by A.Mode of payment
Foreign Portfolio Investors) (1) The amount of consideration shall be paid as inward remittance from abroad
through banking channels or out of funds held in a foreign currency account and/
or a Special Non-Resident Rupee (SNRR) account maintained in accordance with
the Foreign Exchange Management (Deposit) Regulations, 2016.
(2) Unless otherwise specified in these regulations or the relevant Schedules, the
foreign currency account and SNRR account shall be used only and exclusively
for transactions under this Schedule.
B. Remittance of sale proceeds
The sale proceeds (net of taxes) of equity instruments and units of REITs, InViTs
and domestic mutual fundmay be remitted outside India or credited to the foreign
currency account or a SNRR account of the FPI.
(ii) The existing provision at para A (2) of Sl. No. VII shall be substituted by the following, namely:
“Unless otherwise specified in these regulations or the relevant Schedules, the foreign currency account and
SNRR account shall be used only and exclusively for transactions under this Schedule.”
(iii) The existing provision at Sl. No. VIII shall be substituted by the following, namely:
VIII. Schedule VIII A. Mode of payment:
(Investment by a person The amount of consideration shall be paid as inward remittance from abroad
resident outside India in an through banking channels or by way of swap of shares of a Special Purpose
Investment Vehicle) Vehicle or out of funds held in NRE or FCNR(B) account maintained in
accordance with the Foreign Exchange Management (Deposit) Regulations, 2016.
Further, for an FPI or FVCI, amount of consideration may be paid out of their
SNRR account for trading in units of Investment Vehicle listed or to be listed
(primary issuance) on the stock exchanges in India.
B. Remittance of sale/ maturity proceeds:
The sale/ maturity proceeds (net of taxes) of the units may be remitted outside
India or may be credited to the NRE or FCNR(B) or SNRR account, as applicable
of the person concerned.
AJAY KUMAR, Regional Director, New Delhi
[ADVT.-III/4/Exty./72/2020-21]
Foot Note
The Foreign Exchange Management (Mode of Payment and Reporting of Non-Debt Instruments) Regulations, 2019,
(Notification No. FEMA 395/2019-RB dated October 17, 2019) was published in the Official Gazette vide G.S.R.
No.795(E) dated 17.10.2019.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.