{"id":240366,"date":"2020-12-09T12:53:13","date_gmt":"2020-12-09T07:23:13","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=240366"},"modified":"2020-12-09T12:53:13","modified_gmt":"2020-12-09T07:23:13","slug":"fema-non-debt-instruments-rules-amendments-to-fema-non-debt-instruments-2019-rules-introduced","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2020\/12\/09\/fema-non-debt-instruments-rules-amendments-to-fema-non-debt-instruments-2019-rules-introduced\/","title":{"rendered":"FEMA (Non-Debt Instruments) Rules| Amendments to FEMA (Non-Debt Instruments), 2019 Rules introduced"},"content":{"rendered":"<blockquote>\n<h3 style=\"text-align: center;\"><span style=\"color: #0000ff;\">Foreign Exchange Management (Non-debt Instruments) (Fourth Amendment) Rules, 2020<\/span><\/h3>\n<\/blockquote>\n<p style=\"text-align: justify;\">The Central Government makes the Foreign Exchange Management (Non-debt Instruments) (Fourth Amendment) Rules, 2020, to amend the Foreign Exchange Management (Non-debt Instruments) Rules, 2019.<\/p>\n<p style=\"text-align: justify;\">In the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, in rule 6, in clause (a), after the third proviso, the following proviso shall be inserted, namely:-<\/p>\n<blockquote>\n<p style=\"text-align: justify;\">Provided also that a Multilateral Bank or Fund, of which India is a member, shall not be treated as an entity of a particular country nor shall any country be treated as the beneficial owner of the investments of such Bank or Fund in India<\/p>\n<\/blockquote>\n<p style=\"text-align: justify;\">In Schedule 1 of the rules,\u00a0 for the Defence sector, Centre notifies that the Defence Industry subject to Industrial license under the Industries (Development and Regulation) Act, 1951 and Manufacturing of small arms and ammunition under the Arms Act, 1959, the Sectoral Cap will be 100% and Entry Route in case of Automatic up to 74% and Government route beyond 74% wherever it is likely to result in access to modern technology or for other reasons to be recorded.<\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #ff0000;\">Read the detailed notification, here:<\/span><\/strong> <a href=\"http:\/\/egazette.nic.in\/WriteReadData\/2020\/223577.pdf\">NOTIFICATION<\/a><\/p>\n<hr \/>\n<p><strong>Ministry of Finance<\/strong><\/p>\n<p style=\"text-align: right;\"><strong>[Notification dt. 08-12-2020]<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Foreign Exchange Management (Non-debt Instruments) (Fourth Amendment) Rules, 2020 The Central Government makes the Foreign Exchange Management (Non-debt Instruments) (Fourth Amendment) Rules, <\/p>\n","protected":false},"author":8808,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,15],"tags":[20201,44386,44387,44389,7991,44388,29785,41976,44390,37959],"class_list":["post-240366","post","type-post","status-publish","format-standard","hentry","category-legislationupdates","category-rules_regulations","tag-central-government","tag-defence-industry","tag-defence-sector","tag-fema-rules","tag-funds","tag-industrial-license","tag-law","tag-legislation","tag-multilateral-bank","tag-non-debt-instruments"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>FEMA (Non-Debt Instruments) Rules| Amendments to FEMA (Non-Debt Instruments), 2019 Rules introduced | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, 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Amendment Rules, 2025, aligning FDI norms with modern frameworks to enhance clarity, flexibility, and governance.","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"Indian Insurance Companies (Foreign Investment) Amendment Rules","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/12\/Indian-Insurance-Companies-Foreign-Investment-Amendment-Rules.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/12\/Indian-Insurance-Companies-Foreign-Investment-Amendment-Rules.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/12\/Indian-Insurance-Companies-Foreign-Investment-Amendment-Rules.webp?resize=525%2C300&ssl=1 1.5x, 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