Foreign Exchange Management (Establishment
in India of Branch or Office or Other Place of Business) (Amendment) Regulations,
2005
In exercise of the powers conferred by sub section
(6) of Section 6 of the Foreign Exchange Management Act, 1999, and in partial
modification of its Notification No. 22/2000-RB dated 3rd May, 2000
the Reserve Bank makes the following regulations to prohibit, restrict and regulate
establishment in India of a branch or office or other place of business by a
person resident outside India, namely:
1. Short Title and Commencement :-
(i) These Regulations may be called the
Foreign Exchange Management (Establishment in India of branch or office or other
place of business) (Amendment) Regulations, 2005
(ii) They shall come into force with effect
from April 25, 2005*.
2. Amendment to the Regulations:-
In the Foreign Exchange Management (Establishment
in India of Branch or Office or other Place of Business) Regulations, 2000 in
Regulation 3 after the existing proviso, the following proviso may be added
:
‘Provided further that no approval shall be
necessary for an insurance company, if such company has obtained approval from
the Insurance Regulatory and Development Authority established under section
3 of the Insurance Regulatory and Development Authority Act, 1999, for establishing
a Liaison Office in India ’.
(F.R.Joseph)
Chief General Manager
Foot Note:
(i) * This has been mentioned as the date
on which Reserve Bank of India had issued A.P (DIR Series) Circular No. 39 dated
April 25, 2005, to Authorised Banks Dealing in Foreign Exchange.
(ii) The Principal Regulations were published
in the Official Gazette vide G.S.R.No. 408(E) dated May 8, 2000 in Part II,
Section 3, sub-section (i) and subsequently amended as under :-
GSR No. 698(E) dated 01.09.2003
GSR No. 847(E) dated 29.10.2003