In
exercise of the powers conferred by 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 (Remittance of Assets)
Regulations, 2000 (Notification No. FEMA. 13/2000-RB dated May 3,2000), namely
:—
1. Short Title and Commencement :—
(i) These Regulations may be called the
Foreign Exchange Management (Remittance of Assets) (Second Amendment)
Regulations, 2007.
(ii) They shall be deemed to have come into
force from May 31,2007. @
2. Amendment to the Regulations :—
In the Foreign
Exchange Management (Remittance of Assets) Regulations, 2000 (Notification No.
EMA. 13/ 2000-RB dated May 3, 2000), in regulation 4, for sub-regulation (4),
the following shall be substituted, namely :—
“(4) An authorised dealer in India may, without approval from
Reserve Bank, effect remittance of assets made by a person eligible under
sub-regulation (2) or sub-regulation (3) as the case may be and also allow
remittance out of the assets of Indian companies under liquidation under the
provisions of the Companies Act, 1956 , subject to the following conditions :
(i)
Authorised Dealer shall ensure that the remittance is in compliance with the
order issued by a court in India/ order issued by the official liquidator or
the liquidator in the case of voluntary winding up ; and
(ii) no
remittance shall be allowed unless the applicant submits :—
(a) No objection or Tax clearance
certificate from Income Tax authority for the remittance.
(b) Auditor's certificate confirming that
all liabilities in India have been either fully paid or adequately provided
for.
(c) Auditor's certificate to the effect that
the winding up is in accordance with the provisions of the Companies Act, 1956.
(d) In case of winding up otherwise than by
a court, an auditor’s certificate to the effect that there is no legal proceedings
pending in any court in India against the applicant or the company under
liquidation and there is no legal impediment in permitting the remittance.”
[F.
No. l/23/EM/2000-Vol. IV]