Foreign Exchange Management (Establishment in India of Branch or Office or Other Place of Business) (Amendment) Regulations, 2005

In exercise of the powers conferred by sub section (6) of Section 6 of the Foreign Exchange Management Act, 1999, and in partial modification of its Notification No. 22/2000-RB dated 3^rd May, 2000 the Reserve Bank makes the following regulations to prohibit, restrict and regulate establishment in India of a branch or office or other place of business by a person resident outside India, namely:

(i) These Regulations may be called the Foreign Exchange Management (Establishment in India of branch or office or other place of business) (Amendment) Regulations, 2005

(ii) They shall come into force with effect from April 25, 2005*.

In the Foreign Exchange Management (Establishment in India of Branch or Office or other Place of Business) Regulations, 2000 in Regulation 3 after the existing proviso, the following proviso may be added :

‘Provided further that no approval shall be necessary for an insurance company, if such company has obtained approval from the Insurance Regulatory and Development Authority established under section 3 of the Insurance Regulatory and Development Authority Act, 1999, for establishing a Liaison Office in India ’.

(i) * This has been mentioned as the date on which Reserve Bank of India had issued A.P (DIR Series) Circular No. 39 dated April 25, 2005, to Authorised Banks Dealing in Foreign Exchange.

(ii) The Principal Regulations were published in the Official Gazette vide G.S.R.No. 408(E) dated May 8, 2000 in Part II, Section 3, sub-section (i) and subsequently amended as under :-

GSR No. 698(E) dated 01.09.2003
GSR No. 847(E) dated 29.10.2003