The Foreign Exchange Management (Transfer or Issue of Any Foreign Security) (Amendment) Regulations, 2017

The Reserve Bank of India (RBI) vide notification dated November 14, 2017 has issued amendment to the Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004. Vide this amendment in Regulation 15-

·         In sub-regulation (v) clause (a), is substituted which reads as-

“The Statutory Auditors of the Indian Party certify that law of the host country does not mandatorily require auditing of the books of accounts of JV/WOS and the figures in the APR are as per the un-audited accounts of the overseas JV/ WOS.”

·         New clause (c) shall be added which reads as-

“(c) The above exemption from filing the APR based on unaudited balance sheet will not be available in respect of JV/WOS in a country / jurisdiction which is either under the observation of the Financial Action Task Force (FATF) or in respect of which enhanced due diligence is recommended by FATF or the any other country/jurisdiction as prescribed by Reserve Bank of India.”

[G.S.R. 1386(E)]

 

URL: http://egazette.nic.in/WriteReadData/2017/180259.pdf