FEM (TRANSFER OR ISSUE OF ANY FOREIGN SECURITY) (AMENDMENT) REGULATIONS, 2017 – AMENDMENT IN REGULATION 15

NOTIFICATION NO. FEMA.369/2017-RB/GSR 1386(E), DATED 14-11-2017

In exercise of the powers conferred by clause (a) of sub-section (3) of Section 6 and sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank hereby makes the following amendments in the Foreign Exchange Management (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:—

Short Title & Commencement

1. (i) These Regulations shall be called the Foreign Exchange Management (Transfer or Issue of Any Foreign Security) (Amendment) Regulations, 2017.

(ii) They shall come into force from the date of their publication in the Official Gazette.

Amendment to Regulation 15

2. In Regulation 15, in sub-regulation (v),

(i)		for the existing clause (a), the following shall be substituted, namely;
		“The Statutory Auditors of the Indian Party certify that law of the host country does not mandatorily require auditing of the books of accounts of JV/WOS and the figures in the APR are as per the un-audited accounts of the overseas JV/WOS”.
(ii)		after existing clause (b), the following shall be added, namely;
		“(c) The above exemption from filing the APR based on unaudited balance sheet will not be available in respect of JV/WOS in a country/jurisdiction which is either under the observation of the Financial Action Task Force (FATF) or in respect of which enhanced due diligence is recommended by FATF or the any other country/jurisdiction as prescribed by Reserve Bank of India.”