Foreign Exchange Management (Debt Instruments) (Second Amendment) Regulations, 2023

Last updated: 25 October 2023

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The Reserve Bank of India has issued the Foreign Exchange Management (Debt Instruments) (Second Amendment) Regulations, 2023. These new regulations, effective from their publication date, permit individuals residing outside India who maintain a rupee account under specific conditions to buy and sell dated Government Securities and treasury bills. Funds for these purchases must come from their existing rupee accounts, and proceeds from sales or maturity will be credited back to the same accounts.

RESERVE BANK OF INDIA (Financial Markets Regulation Department) (CENTRAL OFFICE) NOTIFICATION Mumbai, the 16th October, 2023 Foreign Exchange Management (Debt Instruments) (Second Amendment) Regulations, 2023 No. FEMA.396(2)/2023-RB.In exercise of the powers conferred by clause (a) of sub-section (2) of section 6 and section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank of India hereby makes the following amendments to the Foreign Exchange Management (D

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1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

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FAQ :

These are amendments made by the Reserve Bank of India to the existing Foreign Exchange Management (Debt Instruments) Regulations, 2019, allowing for new provisions regarding debt instruments.

The regulations come into force from the date of their publication in the Official Gazette.

Persons resident outside India who maintain a rupee account in terms of regulation 7(1) of the Foreign Exchange Management (Deposit) Regulations, 2016, are permitted to do so.

The consideration amount for the purchase must be paid out of funds held in the rupee account maintained by the non-resident individual as per the specified regulation.

The sale or maturity proceeds, after deducting applicable taxes, will be credited to the same rupee account from which the purchase was made.

Notification No : FEMA.396(2)/2023-RB
Source : https://egazette.gov.in/WriteReadData/2023/249619.pdf

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