FEMA (Non debt Instruments) (Amendment) Rules 2021

Foreign Exchange Management (FEMA) (Non debt Instruments) (Amendment) Rules 2021

S.O. 3206(E).—In exercise of the powers conferred by clauses (aa) and (ab) of sub-section (2) of section 46 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Central Government hereby makes the following rules further to amend the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, namely:-

1. Short title and commencement. –
   (1) These rules may be called the Foreign Exchange Management (Non debt Instruments) (Amendment) Rules, 2021.
   (2) They shall come into force on the date of their publication in the Official Gazette.
   
2. In the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, under Rule 23 in sub-rule (7), in clause (i), after sub-clause (B), for the purpose of sub-clause (A), the following Explanation shall be inserted, namely:-
   
   Explanation: An investment made by an Indian entity which is owned and controlled by NRI(s), on a non repatriation basis, shall not be considered for calculation of indirect foreign investment.

Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii), vide number S.O.3732 (E), dated the 17th October, 2019 and subsequently amended vide numbers S.O. 4355 (E), dated the 5th December 2019, S.O. 1278 (E), dated the 22nd April, 2020, S.O. 1374 (E), dated the 27th April, 2020, S.O. 2442 (E), dated the 27th July, 2020 and S.O. 4441 (E), dated the 8th December, 2020.

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