Foreign Exchange Management (Foreign Exchange Derivative Contracts) (Amendment) Regulations, 2010

Substitution of regulation 5A

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 of India makes the following amendments in the Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000 (Notification No. FEMA. 25/2000-RB dated May 3, 2000), namely :–

1. Short Title and Commencement - (i) These Regulations may be called the Foreign Exchange Management (Foreign Exchange Derivative Contracts) (Amendment) Regulations, 2010.

(ii) They shall come into force form the date of their publication in the Official Gazette.

2. Amendment of the Regulations. – In the Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000 (Notification No. FEMA.25/2000-RB, dated May 3, 2000), for Regulation 5A, the following shall be substituted, namely :–

“5A. Permission to a person resident in India to enter into currency futures or currency options – A Persons resident in Indian may enter into currency futures or currency options on a stock exchange recognized under Section 4 of the Securities Contract (Regulation) Act, 1956, to hedge an exposure to risk or otherwise, 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.”