Notification No. FEMA/76 /2002-RB

dated 12^th November 2002

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, the Reserve Bank of India makes the following Regulations to amend the Foreign Exchange Management ( Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000, namely:-

1. Short title and commencement:-

(i) These Regulations may be called the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Second Amendment) Regulations 2002.

(ii) They shall come into force on their publication in the official gazette.

2. Amendment of the Regulation

(i) In Regulation 6, the following may be added as sub-Regulation (2)(ii):-

' The existing non-resident shareholders may apply for issue of additional shares, and the investee company may allot the same subject to the condition that the overall issue of shares to non-residents in the total paid-up capital does not exceed the sectoral cap'.

(ii) The existing sub-regulation 2(ii) and 2(iii) of Regulation 6, may be renumbered as Sub-Regulation 2(iii) and 2(iv) respectively.