2. It was mentioned in these circulars that necessary amendments to the Foreign Exchange Management Regulations, 2000 were being issued separately. The relevant amendments have since been issued by Reserve Bank and notified by the Government, in the Official Gazette, as indicated in the Annex. A copy each of these Notifications is enclosed.

3. Authorised dealers may bring the contents of this circular to the notice of their constituents and customers concerned.

4. The directions contained in this circular have been issued under section 10(4) and section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).

[A.P.(DIR Series) Circular No.9 dated September 1, 2004]

Notification No.FEMA.111/2004-RB

March 6, 2004

Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India)

In exercise of the powers conferred by clause (b) of sub-section (3) of Section 6 and 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 3^rd May 2000 read with Notification No.FEMA 94/2003-RB dated 18^th June 2003, the Reserve Bank of India makes the following amendments in the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000, as amended from time to time, namely:-

(i) These Regulations may be called the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India)(Amendment) Regulations, 2004.

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

In the Foreign Exchange Management (Transfer or Issue of Security by a person Resident outside India) Regulations, 2000,

In Schedule 1, under Annexure B, after item 20, the following item shall be inserted, namely :

Foot Note : The Principal Regulations were published in the Official Gazette vide G.S.R.No.406(E) dated May 3, 2000 in Part II, Section 3,Sub-section (i) and subsequently amended vide :

1. G.S.R.No.175(E) dated December 26, 2000
2. G.S.R.No.182(E) dated February 16, 2001
3. G.S.R.No.158(E) dated March 2, 2001
4. G.S.R.No.574(E) dated September 20, 2001
5. G.S.R.No.4(E) dated November 29, 2001
6. G.S.R.No.223(E) dated November 12, 2002
7. G.S.R.No.225(E) dated January 17, 2003
8. G.S.R.No.558(E) dated June 18, 2003
9. G.S.R.No.835(E) dated October 3, 2003 and
10. G.S.R.No.899(E) dated October 27, 2003

Notification No.FEMA.114/2004-RB dated 13 March , 2004

Foreign Exchange Management (Export of Goods and Services) (Amendment) Regulations, 2004

In exercise of the powers conferred by clause (a) of sub-section (1) and sub-section (3) of Section 7, sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999) and in partial modification of its Notification No.FEMA.23/ 2000-RB, dated 3^rd May 2000, as amended from time to time, the Reserve Bank of India makes the following amendment in the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, namely :

1. The regulations may be called the Foreign Exchange Management (Export of Goods and Services) (Amendment) Regulations, 2004.
2. They shall come into force from the date of their publication in the Official Gazette.

In the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, in Regulation 17, the following amendments shall be made, namely :-

(i) in sub-regulation (1), for clause (b) the following shall be substituted, namely : '(b) that any declaration to be furnished to the specified authority shall be submitted to the authorised dealer for its prior approval, which may, having regard to the circumstances, be given or withheld or may be given subject to such conditions as may be specified by the Reserve Bank by directions issued from time to time.'

(ii) for sub-regulation (2), the following shall be substituted, namely :

'(2) No direction under sub-regulation (1) shall be given by the Reserve Bank and no approval under clause (b) of that sub-regulation shall be withheld by the Authorised Dealer, unless the exporter has been given a reasonable opportunity to make a representation in the matter.'

Shyamala Gopinath
Executive Director

Foot Note :The Principal Regulations were published in the Official Gazette vide G.S.R.No.409(E) dated May 3, 2000 in Part II, Section 3, Sub-section (i) and subsequently amended vide

a) G.S.R.No.199(E) dated February 27, 2001,

b) 473(E) dated April 1, 2002,

c) 773(E) dated August 27, 2003, and

d) 900(E) dated October 29, 2003.

Notification No.FEMA.115/2004-RB dated March 25, 2004

Foreign Exchange Management (Borrowing and Lending in Rupees)(Amendment) Regulations, 2004

In exercise of the powers conferred by clause (e) of sub-section (3) of Section 6 and sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999) and in partial modification of its Notification No.FEMA 4/2000-RB dated May 3, 2000, the Reserve Bank of India makes the following Regulations to amend the Foreign Exchange Management (Borrowing and Lending in Rupees) Regulations, 2000, namely:

1. These Regulations may be called the Foreign Exchange Management (Borrowing and Lending in Rupees) (Amendment) Regulations, 2004.
2. They shall come into force from the date of their publication in the Official Gazette.

In the Foreign Exchange Management (Borrowing and Lending in Rupees) Regulations 2000, in Regulation 7, the following amendments shall be made, namely:-

1. the title shall be substituted as 'Loans in Rupees to non-residents'
2. after sub-regulation (B) the following sub-regulation shall be inserted, namely:

'(C) for any purpose as per the loan policy laid down by the Board of Directors of the Authorised Dealer.

Provided that

d. the loan amount shall not be remitted outside India;

Shyamala Gopinath
Executive Director

Foot Note : The Principal Regulations were published in the Official Gazette vide G.S.R.No.387(E) dated May 3, 2000 in Part II, Section 3, Sub-section (i) and subsequently amended vide G.S.R.Nos.90(E) dated November 27, 2000 and 754(E) dated August 20, 2002.

Notification No.FEMA.116/2004-RB dated March 25, 2004

Foreign Exchange Management (Export of Goods and Services) (Second Amendment) Regulations, 2004

In exercise of the powers conferred by clause (a) of sub-section (1) and sub-section (3) of Section 7, sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999) and in partial modification of its Notification No.FEMA.23/2000-RB, dated 3^rd May 2000, the Reserve Bank of India makes the following amendment in the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, as amended from time to time namely :

(i) These regulations may be called the Foreign Exchange Management (Export of Goods and Services) (Second Amendment) Regulations, 2004.

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

In the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, in Regulation 4, the following amendments shall be made, namely :-

(i) in clause (d), for the words 'twenty five thousand rupees in value' the words 'twenty five thousand USD in value' shall be substituted,

(ii) in clause (e), for the words 'one lakh rupees in value' the words 'five lakh rupees in value' shall be substituted.