In exercise of
the powers conferred by clause (f) of sub-section (3) of section 6,
sub-section (2) of section 47 of the Foreign Exchange Management Act, 1999 (42
of 1999) the Reserve Bank of India makes the following amendments in the
Foreign Exchange Management (Deposit) Regulations, 2000 (Notification No. FEMA.
5/2000-RB dated May 3, 2000) namely :—
1. Short
Title and Commencement: (i) These Regulations may be called the Foreign Exchange
Management (Deposit) (Third Amendment) Regulations, 2007.
(ii)
They shall be deemed to have come into force from May 24,2007. @
2. Amendment
of the Regulations : In the Foreign Exchange Management (Deposit) Regulations, 2000
(Notification No. FEMA. 5/2000-RB dated May 3, 2000).
(i) in
regulation 5, after sub-regulation (2), the following new sub-regulation shall
be inserted, namely :
“2A
Non-resident acquirers may, subject to the terms and conditions specified in
Schedule 8, open, hold and maintain Escrow Account and Special Account with
Authorised Dealers in India without prior approval of the Reserve Bank, for
acquisition/transfer of shares/convertible debentures through open
offers/delisting/exit offers, subject to the relevant Security Exchange Board
of India (SAST) Regulations or any other applicable Security Exchange Board of
India Regulations/provisions of the Companies Act, 1956.”
(ii)
after Schedule 7, a new Schedule as in Annex to these regulations shall be
inserted.
[F.
No. l/23/EM/2000-Vol. IVl