Notification No. FEMA. 183 /2009-RB Dated 20/1/ 2009
Foreign Exchange Management (Borrowing and Lending in
Rupees)
( Amendment) Regulations, 2009
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) the Reserve Bank of India makes the following amendments in the Foreign Exchange Management (Borrowing and Lending in Rupees) Regulations, 2000 (Notification No. FEMA 4/2000-RB dated 3rd May, 2000) as amended from time to time, namely:-
(i) These Regulations may be called the Foreign Exchange Management (Borrowing and Lending in Rupees) (Amendment) Regulations, 2009.
(ii) They shall come into force from the date specified in these regulations.
2. Amendment of the Regulations:-
In the Foreign Exchange Management (Borrowing and Lending in Rupees)
Regulations, 2000 ( Notification
No. FEMA 4/2000-RB dated 3rd May, 2000), in Regulation 5, after
sub-regulation (3) the following new sub-regulation (4) shall be inserted,
namely, -
"(4) The borrowing by way of issue of preference shares on or after
30th day of April 2007 other than those which are fully and mandatorily
convertible into equity within a specified time and issue of convertible
debentures on or after 7th day of June 2007, other than those which are fully
and mandatorily convertible into equity within a specified time, to a person
resident outside India, shall be considered as debt and shall accordingly
conform to Regulation 6 of the Foreign Exchange Management (Borrowing or Lending
in Foreign Exchange) Regulations 2000 (Notification
No. FEMA. 3/2000-RB dated 3rd May, 2000) including the limits to such
Borrowings as specified in the said regulations.”
(Salim Gangadharan)
Chief General Manager-in-Charge
(i) Foot Note:
The Principal Regulations were published in the Official Gazette vide G.S.R.No.
387(E) dated May 5, 2000 in Part II, Section 3, sub-section (i) and subsequently
amended as under:
G.S.R.No. 90(E) dated 12.02.2001
G.S.R.No. 754(E) dated 8.11.2002
G.S.R.No. 351(E) dated 8.06.2004
G.S.R.No. 453(E) dated 16.07.2004
G.S.R.No. 711(E) dated 14.11.2007