RBI amends FEMA (Permissible Capital Account Transactions) Regulations; defines derivative for the first time; effective 26-02-2019

RBI amends FEMA (Permissible Capital Account Transactions) Regulations; defines derivative for the first time; effective 26-02-2019

March 4, 2019 CORP, FOREX 0

The Reserve Bank of India, Financial Markets Regulations Department (“Department”) has by virtue of a Gazette notification dated February 26, 2019 notified the Foreign Exchange Management (Permissible Capital Account Transactions) (Amendment) Regulations, 2019 (“Regulation”) which is effective since February 26, 2019.

The main objective of the amendment is to bring derivative contracts under the ambit of the regulation. Accordingly, a new definition for Derivative under clause (da) of Regulation 2 has been introduced and also Schedule I and II of the Regulation has been amended to include derivative contracts.

SourceE-Gazette

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