Foreign
Currency Accounts by a Person Resident in India
(GSR
393 (E) dated 3rd May, 2000)
These
regulations seek to regulate opening and maintenance
of foreign currency accounts in or outside India by
a person resident in India. Except to the extent provided
in the Act, and Rules or Regulations made thereunder,
opening and maintenance of foreign currency account
in India or outside India by a person resident in India
would require approval of Reserve Bank.
Possession
and Retention of Foreign Currency
(GSR
394 (E) dated 3rd May, 2000)
Under
these Regulations,
-
Authorised persons have been permitted to possess
foreign currency and coins in accordance with the
limits, if any, advised to them by the Reserve Bank.
-
There is no limit on the possession of foreign coins
by any person.
-
Any person resident in India is permitted to retain
in aggregate foreign currency not exceeding US$
2000 or its equivalent in the form of currency notes/bank
notes or travellers' cheques acquired by him from
sources referred to in clauses (a) to (d) of sub-regulation
(iii) of Regulation no. 3.
-
A person resident in India but not permanently resident
therein is permitted to possess foreign currency
in the form of currency notes, bank notes and travellers'
cheque without limit if such foreign currency was
acquired when he was resident outside India and
was brought into India and declared to the Customs
authorities where such declaration was to be made.
Insurance
(GSR
395 (E) dated 3rd May, 2000)
Under
these Regulations, there is a prohibition on taking
general or life insurance policy by an insurer outside
India. The Reserve Bank may, for sufficient reasons
permit a person resident outside India to take any life
insurance policy issued by an insurer outside India.
A
person resident in India but not permanently resident
therein may continue to hold any insurance policy issued
to him by an insurer outside India, if the premium on
such policy is paid out of foreign currency resources
outside India. A person resident in India may take or
continue to hold a general insurance policy issued by
an insurer outside India, provided that, before taking
the policy in either case, he had obtained a no objection
certificate from the Central Government.
A
person resident in India may continue to hold any insurance
policy issued by an insurer outside India when such
person was resident outside India subject to Regulation
3(i). The maturity proceeds/ amount of claim received
in respect of the such policy may be credited to the
policy holder's foreign currency account maintained
with a bank outside India or, as the case may be, to
his Resident Foreign Currency account maintained with
an authorised dealer in India subject to Regulation
no. 3(ii).
Manner
of Receipt and Payment
(GSR
397 (E) dated 3rd May, 2000)
These
regulations specify the manner of receipt and payments
in foreign exchange.
Export
of Goods and Services
(GSR
409 (E) dated 3rd May, 2000)
Theses
regulations provide that every exporter of goods or
software shall furnish to the specified authority a
declaration, alongiwth evidence in support of the declaration,
in one of the following prescribed forms:
- Form
GR for export otherwise than by Post
- Form
SDF in case of shipping bills under EDI system.
- Form
PP for export by post.
- Form
SOFTEX for export of software, otherwise than in physical
form, i.e., magnetic tapes/discs, and paper media.
Categories
of exports for which a declaration need not be completed,
among others, include
trade samles of goods and publicity material supplied
free of payment.
- personal
effects of travellers.
- export
of goods / software not exceeding Rs. 25,000/- in
value
- export
by way of gift not exceeding Rs. One lakh in value.
- Goods
imported free of cost on re-export basis.
- Export
of goods not exceeding US$ 1,000 or its equivalent
per transaction to Myanmar under Barter Trade Agreement.
- Certain
goods permitted for the Export Processing Zones or
Free Trade Zones.
- Aircraft
or aircraft engines and spare parts for overhauling/repairs
and re-import, etc.
The
regulations also pertain to manner of payment of export
value of goods, period within which export value of
goods/software to be realised, export on Elongated Credit
Terms, submission of export documents, payment for export,
certain exports requiring prior approval, delay in receipt
of payment, advance payment against exports, project
exports, etc.
Foreign
Exchange Derivative Contracts
(GSR 411 (E) dated 3rd May, 2000)
Except
to the extent permitted in the Regulations any person
resident in India or outside India proposing to enter
into a foreign exchange derivative contract would require
prior permission of Reserve bank.
The
persons resident in India may enter into forward contracts
with an authorised dealer for the transactions and subject
to the terms and conditions mentioned in Part A of Schedule
I.
A
person resident in India may enter into a foreign exchange
derivative contract other than forward contract for
the transactions and subject to the conditions mentioned
in Part B of Schedule I.
Categories
of persons resident outside India mentioned in Schedule
II are permitted to enter into forward contracts with
an authorised dealer in India to hedge the transactions
specified in that schedule subject to the terms and
conditions mentioned therein.
The
applications for hedging of commodity price risks are
required to be made to Reserve bank for prior approval
through the International Divisions and the authorised
dealer and the documents to be furnished with the applications
have been explained in schedule III.
Transfer
or Issue of any Foreign Security
(GSR 456 (E) dated 3rd May, 2000)
These
regulations seek to regulate acquisition and transfer
of a foreign security by a person resident in India
i.e. investment by an Indian entities in overseas joint
ventures and wholly owned subsidiaries as also investment
by a person resident in India in shares and securities
issued outside India.
- General
permission has been granted to residents for purchase
/ acquisition of securities
out of funds held in RFC account;
- issued
as bonus shares on existing holding of foreign currency
shares, and
- sale
of shares / securities so acquired.
General
permission has also been granted to a person resident
in India for purchase of securities out of their foreign
currency resources outside India as also for sale of
securities so acquired.
For
the purpose of investment of foreign securities in other
cases the Regulations have been divided in two parts
viz :
- Direct
Investment outside India
- The
provisions are contained in Part I of the Regulation.
- Investments
in foreign securities other than by way of Direct
Investment.
- The
provisions are contained in Part II of the Regulation.
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