RBI Amends Regulation 6: SEZ Units Exempt from $50M Cap on Foreign Investments via EEFC Accounts

The Reserve Bank of India issued the Foreign Exchange Management (Transfer or Issue of any Foreign Security) (Second Amendment) Regulations, 2002, amending the 2000 regulations. Effective from its publication date, the amendment modifies Regulation 6 to exempt units in Special Economic Zones from the US $50 million ceiling on financial commitments if the investment is made from balances in their EEFC accounts. This change aligns with the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2000. The notification was published in the Official Gazette on April 9, 2002.

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