Amendment in Schedule I - Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) - 245/2012 - Foreign Exchange Management

Amendment in Schedule I - Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Notification No. FEMA 245/2012-RB Dated 12-11-2012 GSR 832(E)- In exercise of the powers conferred by clause (b) 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 hereby makes the following amendments in the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000 ( Notification No. FEMA. 3/2000-RB, dated 3rd May, 2000 ), namely: 1. Short title and commencement: (a) These Regulations may be called the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) (Second Amendment) Regulations, 2012. (b) They shall come into force from the date of their publication in the Official Gazette. 2. Amendment of the Regulations: In the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000 ( Notification No. FEMA 3/2000-RB, dated May 3, 2000 ) (hereinafter referred to as 'the principal regulations') (A) In Schedule I, after para (2), the following shall be added, namely:- "(3) Foreign currency borrowings by successful bidders of 2G spectrum reauction: (i) The successful bidders can avail of foreign currency borrowing in the nature of bridge finance for the purpose of making upfront payment towards spectrum allocation and refinance the same by making fresh borrowing in foreign exchange in accordance with the Act or the Rules and Regulations made thereunder in accordance with this Schedule, subject to satisfying the terms and conditions as may be specified by the Reserve Bank, from time to time in this regard. (ii) Provisions of sub-paragraph (v) of paragraph 1 shall not apply to the foreign currency borrowing in the nature of bridge finance made under para 3(i). (iii) The restriction of repayment of Rupee loans as specified in clause (B) in sub-paragraph (iv) of paragraph 1 shall not apply to the foreign currency borrowing availed of for refinancing domestic borrowings for making upfront payment towards spectrum allocation. (iv) Such foreign currency borrowings can also be availed of from the ultimate parent company subject to satisfying the terms and conditions as may be specified by the Reserve Bank, from time to time in this regard."