FEMA (Non-debt Instruments) (Third Amendment) Rules 2021

FEMA (Non-debt Instruments) (Third Amendment) Rules 2021

S.O. 4091(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. (1) These rules may be called the Foreign Exchange Management (Non-debt Instruments) (Third 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, in Schedule I, in the Table, after Sl no. 4.2, the following entries shall be inserted namely:-
   
   “4.3 Notwithstanding anything contained at Sl. No. 4.2 above, foreign investment up to 100% under the automatic
   route is allowed in case an ‘in-principle’ approval for strategic disinvestment of a PSU has been granted by
   the Government.”

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 notification numbers: –
(i) S.O. 4355 (E), dated the 5th December 2019,
(ii) S.O. 1278 (E), dated the 22nd April, 2020,
(iii) S.O. 1374 (E), dated the 27th April, 2020,
(iv) S.O. 2442 (E), dated the 27th July, 2020,
(v) S.O. 4441 (E), dated the 8th December, 2020,
(vi) S.O. 3206 (E), dated the 9th August, 2021,
(vii) S.O. 3411 (E), dated the 19th August, 2021.

Notification

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