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The Reserve Bank of India amends the Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000 to permit eligible persons resident outside India to enter into currency futures or exchange traded currency options. The person resident outside India must be eligible to invest in securities under Schedules 2, 5, 7 and 8 of Foreign Exchange Management Regulations. The person enters into currency futures or exchange traded currency options contracts on a recognised stock exchange to hedge an exposure to risk. The contracts are subject to terms and conditions set in the directions issued by the Reserve Bank of India from time to time.
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RESERVE BANK OF INDIA FOREIGN EXCHANGE DEPARTMENT CENTRAL OFFICE MUMBAI
Notification No. FEMA 303/2014-RB
May 21, 2014
Foreign Exchange Management (Foreign Exchange Derivative Contracts) (Amendment) Regulations, 2014
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 25/2000-RB dated 3rd May 2000) namely:-
“Permission to a person resident outside India to enter into currency futures or exchange traded currency options
A person resident outside India who is eligible to invest in securities as laid down in Schedules 2, 5, 7 and 8 of Foreign Exchange Management (Transfer or Issue of Security by a person resident outside India) Regulations, 2000 (FEMA 20/2000-RB dated May 3, 2000 (GSR 406 (E) dated May 3, 2000)) as amended from time to time, may enter into currency futures or exchange traded currency options contracts on a stock exchange recognised under section 4 of Securities Contracts (Regulations) Act, 1956 to hedge an exposure to risk, subject to such terms and conditions as may be set forth in the directions issued by the Reserve Bank of India from time to time.”
(S M Pillai) General Manager In-charge
Footnote:-
Published in the Official Gazette of Government of India – Extraordinary – Part-II, Section 3, Sub-Section (i) dated 02.06.2014- G.S.R.No.374 (E)
