S.O. 3206(E).—In exercising its powers under paragraphs (aa) and (ab) of subsection (2) of section 46 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Central Government hereby enacts the following rules amending the Exchange Management (Other than Debt Instruments) Rules, 2019, namely: – Note: The main rules have been published in the Official Gazette of India. Extraordinary, Part II, Division 3, Subdivision (ii), see S.O.3732 (E), dated October 17, 2019 and subsequently amended S.O. 4355 (E), dated December 5, 2019, N/A 1278 (E), dated April 22, 2020, N/A 1374 (E), dated April 27, 2020, N/A 2442 (E), dated July 27, 2020 and N/A 4441 (E), dated December 8, 2020. 1. Short title and beginning. – (1) These rules may be referred to as the Exchange Management (Non-Debt Instruments) (Amendment) Rules 2021. (A) another Indian company (IE) that has received foreign investment and (i) EI is not owned or controlled by resident Indian citizens or (ii) is owned or controlled by persons residing outside India; or COMMUNICATION FROM THE MINISTRY OF FINANCE (Ministry of the Economy). Provided that no person resident in India other than an Indian entity may receive indirect foreign investment;. The Ministry of Finance notified the Exchange Management (Non-Debt Instruments) (Amendment) Rules 2021 amending the existing Exchange Management (Other than Debt Instruments) Rules 2019 in accordance with its notification of 6 August 2021, which is due to enter into force on 9 August 2021.
Date of publication in the Official Journal Insertion: In accordance with Rule 23(7)(i)(B), the following explanation is inserted for the purposes of point (A): Explanatory note: An investment made by an Indian company owned and controlled by NRI shall not be taken into account in the calculation of indirect foreign investment. 2. In the Exchange Management (Non-Debt Instruments) Rules 2019, in accordance with Rule 23 of Paragraph (7), sub-paragraph (i), after Paragraph (B), the following explanation is inserted for the purposes of subsection (A), namely: (i) “indirect foreign investment” means the downstream investment received by an Indian company from [F. No. 01/05/EM/2019] ANAND MOHAN BAJAJ, Addl. 2. They shall enter into force on the day of their publication in the Official Journal.
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