Reserve Bank of India
(Exchange Control Department)
Central Office
Mumbai 400 001

Notification No.FEMA.90/2003-RB

Dated May 23, 2003

In exercise of the powers conferred by clause (b) of Section 9 and clause (e) of 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 10/2000-RB dated May 3, 2000, as amended from time to time, the Reserve Bank of India makes the following amendments in the Foreign Exchange Management (Foreign Currency Account by a Person Resident in India) Regulations 2000 namely:

(a) These Regulations may be called the Foreign Exchange Management (Foreign Currency Account by a Person Resident in India) (Third Amendment) Regulations, 2003.

(b) They shall come into force on their publication in the Official Gazette.

In the Foreign Exchange Management (Foreign Currency Account by a Person Resident in India) Regulations 2000,

a) in Regulation 5A, in sub-regulation (1), after clause (d), the following clauses shall be added, namely : -

'(e) as gift from a close relative;

Explanation : For the purpose of this clause, 'close relative' means relatives as defined in Section 6 of the Companies Act, 1956.

(f) by way of earning through export of goods/services, or as royalty, honorarium or by any other lawful means;

(g) representing the disinvestment proceeds received by the resident accountholder on conversion of shares held by him to ADRs/GDRs under the Sponsored ADR/GDR Scheme approved by the Foreign Investment Promotion Board of Government of India.'

b) in the Schedule, in paragraph 2, after clause (iv), the following clause shall be added, namely : -

'(v) representing the disinvestment proceeds received by the resident accountholder on conversion of shares held by him to ADRs/GDRs under the Sponsored ADR/GDR Scheme approved by the Foreign Investment Promotion Board of Government of India.'