TMI BlogForeign Exchange Management Act, 1999X X X X Extracts X X X X X X X X Extracts X X X X ..... ications bearing serial No. 26 to 39 (copies enclosed). The synopsis of these Regulations is furnished in the following paragraphs. Notification No.FEMA 26 / 2000 - RB dated 14th August 2000 in partial modification of Notification No. FEMA 3/ 2000-RB dated 3rd May 2000 In terms of Foreign Exchange Management ( Borrowing or Lending in Foreign Exchange) Regulations, 2000, authorised dealers were permitted to grant credit facilities against the balances held in EEFC accounts. It has been decided that credit facilities, both fund based and non-fund based, against the balances held in EEFC accounts should not be granted. In this regard attention of authorised dealers is invited to A.P. ( DIR Series ) Circular No. 6 dated August 14, 2000. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o enable importers/exporters of crude oil and petroleum products to hedge their exposure to price risk. In this regard attention of authorised dealers is invited to A.P. ( DIR Series ) Circular No. 11 dated September 5, 2000. 4. Notification No.FEMA 29 / 2000 - RB dated 26th September 2000 in partial modification of Notification No. 16/RB-2000 dated 3rd May 2000 Authorised dealers are aware that borrowing and lending of Indian rupees between two residents does not attract any provisions of the Foreign Exchange Management Act, 1999. In cases where a rupee loan is granted against the guarantee provided by a non-resident, there is no transaction involving foreign exchange until the guarantee is invoked and the non-resident guarantor is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00 The procedure for opening and maintenance of Exchange Earners' Foreign Currency (EEFC) accounts is given in the Foreign Exchange Management ( Foreign Currency Accounts by a Person Resident in India ) Regulations, 2000. The captioned Notification seeks to amend the procedures for opening, holding and maintenance of the Exchange Earner' Foreign Currency (EEFC) Accounts. The amendments are: EEFC accounts can be opened, held, or maintained only in the form of non-interest bearing current account, and limits of eligible credits to the EEFC accounts are revised to 70% for Export Oriented Units or units in (a) Export Processing Zone or (b) Software Technology Park or (c) Electronic Hardware Technology Park and to 50% for other persons resi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtial modification of Notification No. FEMA 10/2000- RB dated 3rd May 2000 The captioned amendment is made to facilitate foreign nationals resident in India to open and maintain foreign currency accounts with a bank outside India. The facility is available to such foreign nationals who are employees of a foreign company and are on deputation to the office/branch/subsidiary/joint venture in India of the foreign company. The salary payable to the employee for services rendered in India can be credited to the account provided that :- the amount to be credited to such account shall not exceed 75% of the salary accrued to such person from the foreign company; the remaining salary shall be paid in India in Indian rupees; and the Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c Zones for exports of computer software and audio/video/television software in Form Softex. In regulation 9 - The existing Regulation is numbered as (1). Sub-Regulation (2) permits the units situated in Special Economic Zones to realise and repatriate to India the full export value of goods or software within a period of twelve months from the date of export. Reserve Bank has also been empowered to extend the said period beyond twelve months. The Bank has also been empowered to direct, if necessary, that a unit shall cease to be governed by provisions of sub-regulation (2) and in such a case the unit shall be governed by sub-regulation (1). The format of the Form SOFTEX has been revised. 12. Notification No.FEMA 37 / 2001 - RB da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment authorises a company in India to make payment in rupees to its non-whole time director, who is a person resident outside India and who is on a visit to India for the company's work. The payments can be towards sitting fees, commission or remuneration, travel expenses in accordance with the provisions of the concerned company's Memorandum of Association or Articles of Association or in terms of any other agreement entered into by it or in any resolution passed by its general meeting/Board of Directors. Such payments shall however, be subject to compliance of any other law, rules, regulations or directions applicable in this behalf. 15. Authorised dealers may bring the contents of this circular to the notice of their constituents conc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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