The Ministry of Finance has notified the Foreign Exchange Management (Non- debt Instruments) (Fourth Amendment) Rules, 2020, which seeks to amend Foreign Exchange Management (Non-debt Instruments) Rules, 2019.
In the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, in rule 6, in clause (a), after the fourth proviso shall be inserted, “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.”
The notification further seeks to amend schedule I.
In schedule for the Defence sector the government notified 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.
The notification will come into force from December 8, 2020.
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