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Home Corporate Laws Govt. notifies Foreign Exchange Management (Non-debt Instruments) (Third Amendment) Rules, 2020

Govt. notifies Foreign Exchange Management (Non-debt Instruments) (Third Amendment) Rules, 2020

By Mariya Paliwala -

The Central Government vide notification dated 27th July, 2020 has issued the Foreign Exchange Management (Non-debt Instruments) (Third Amendment) Rules, 2020.

The amendment seeks to empower the Reserve Bank of India (RBI) to issue such directions, circulars, instructions, clarifications necessary for effective implementation of the provisions of these rules, without consulting the central government.

In the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (hereinafter referred to as the principal rules), after rule 2, “Reserve Bank to administer these rules. These rules shall be administered by the Reserve Bank. While administering these rules, the Reserve Bank may interpret and issue such directions, circulars, instructions, clarifications, as it may deem necessary, for effective implementation of the provisions of these rules,” shall be inserted.

The amendment also provides that Air Operator Certificate to operate Scheduled Air Transport Services (including Domestic Scheduled Passenger Airline or Regional Air Transport Service) shall be granted only to some company or a body corporate.

Firstly, it can be granted to that body corporate which is registered and has its principal place of business within India.

Secondly, it can be granted to that body corporate whose Chairman and at least two-thirds of its Directors are citizens of India.

Lastly, it can be granted to that body corporate whose substantial ownership and effective control are vested in Indian nationals.

To Read the full text of the Notification CLICK HERE