On 06-05-2024, the Reserve Bank of India amended the Foreign Exchange Management (Deposit) Regulations, 2016 (‘Principal Regulations’) through powers conferred by Section 47(2) of the Foreign Exchange Management Act, 1999. The amendment shall be called the Foreign Exchange Management (Deposit) (Fourth Amendment) Regulations, 2024. It shall be come into effect from 06-05-2024.
Key Points:
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Sub-regulation 6 has been inserted providing that an authorized dealer in India can allow a person who resides outside India, and who has entered into a permitted derivative contract to open, hold, and maintain an interest-bearing account in either Indian or Foreign currency for posting and collecting margin in India.
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The permitted derivative contract entered into by the above-mentioned person should be in terms of Foreign Exchange Management (Margin for Derivative Contracts) Regulations, 2020 as amended from time to time.
