Reserve
Bank of India
Exchange Control Department
Central Office
Mumbai
Notification
No. FEMA 95/2003-RB Dated
July 2, 2003 Foreign
Exchange Management (Establishment in India of branch
or office or other place
of business) (Amendment) Regulations, 2003 In
exercise of the powers conferred by sub-section (6) of Section 6 of the Foreign
Exchange Management Act, 1999 (42 of 1999), and in partial modification of its
Notification No. FEMA 22/2000-RB dated 3rd May 2000, the Reserve Bank of India
makes the following amendments in the Foreign Exchange Management (Establishment
in India of Branch or Office or other place of Business) Regulations, 2000, namely: Short
title and commencement:- 1.
(i) These Regulations may be called the Foreign Exchange Management (Establishment
in India of Branch or Office or other Place of Business), (Amendment) Regulations,
2003. (ii)
They shall come into force from the date of their publication in the Official
Gazette of Government of India. Amendment
to the Regulations: 2.
In the Foreign Exchange Management (Establishment in India of Office or other
Place of Business) Regulations 2000,
(1) in Regulation 3, the words, 'or a Project Office' shall be deleted.
(2) in Regulation 5,
(a) in the heading, for the words, 'or Project Office etc.,' the word 'office'
shall be substituted.
(b) for sub-regulation (ii), the following clause shall be substituted, namely:
(ii) A foreign Company may open a Project Office/s in India provided it has secured
from an Indian company, a contract to execute a project in India, and (a)
the project is funded directly by inward remittance from abroad; or (b)
the project is funded by a bilateral or multilateral International Financing Agency;
or (c) the project
has been cleared by an appropriate authority; or (d)
a company or entity in India awarding the contract has been granted Term Loan
by a Public Financial Institution or a bank in India for the project.
(iii) The Foreign Company shall furnish a report to the concerned Regional Office
of Reserve Bank of India under whose jurisdiction the Project Office is set up,
giving details as under:
(a) Name and address of the foreign company
(b) Reference No. and date of letter awarding the contract referred to in clause
(ii) of Regulation 5
(c) Total amount of contract
(d) Address and tenure of Project Office
(e) Nature of Project undertaken.
(c) the sub-regulation (iii) shall be deleted. (3)
in Regulation 6, for sub-regulation (ii), the following sub-regulation shall be
substituted, namely: '
(ii) Opening of Project Office under clause (ii) of Regulation 5 is permitted
in India and such project office shall not undertake or carry on any other activity
other than the activity relating and incidental to execution of the project. (4)
In Form FNC-1,
(a) in para B, the item (iii) shall be deleted. (b)
Clause 5 shall be deleted and Clause 6 shall be re-numbered as 5. (Usha
Thorat)
Executive Director
Published in the Official Gazette of Government
of India - Extraordinary - Part-II, Section 3,
Sub-Section (i) dated 01.09.2003 - G.S.R.No.698(E)
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