Foreign Exchange Management (Foreign Exchange Derivative Contracts) (Second Amendment) Regulations, 2017 - 388/2017-RB - Foreign Exchange Management

RESERVE BANK OF INDIA (Financial Markets Regulation Department ) (CENTRAL OFFICE) NOTIFICATION No. FEMA. 388/2017-RB Mumbai, the 24th October, 2017 Foreign Exchange Management (Foreign Exchange Derivative Contracts) (Second Amendment) Regulations, 2017 G.S.R.1324(E).- In exercise of the powers conferred by clause (h) of sub-section (2) of section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank hereby makes the following amendments in the Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000 ( Notification No. FEMA 25/RB-2000 dated May 3, 2000 ), namely:- 1. Short Title and Commencement i. These regulations may be called the Foreign Exchange Management (Foreign Exchange Derivative Contracts) (Second Amendment) Regulations, 2017. ii. These regulations come into force with effect from the date of their publication in the Official Gazette. 2. Amendment to the Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000 ( Notification No. FEMA 25/RB-2000 dated May 3, 2000 ): i. Under the principal regulations, a new para 5C to be added : 5C. Permission to resident and non-resident entities to undertake hedge transactions with simplified Procedures Notwithstanding anything contained in paras 4, 5, 5A and 5B, resident entities with foreign currency exposures and non- resident entities with rupee exposures, other than individuals, may hedge underlying exchange rate risk arising out of transactions permitted under Foreign Exchange Management Act, 1999, or rules or regulations or directions or orders made or issued thereunder, subject to such simplified terms and conditions as may be set forth in the directions issued by the Reserve Bank from time to time. T. RABI SANKAR, Chief General Manager [ F. No. 1/15/EM/2015]