In exercise of the powers conferred by clause (a) of sub-section (3) of section 6 and sub-section (2) of section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank of India hereby makes the following amendments in the Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004 (Notification No. FEMA 120/RB-2004, dated July 7, 2004), namely :—
 

Short Title and Commencement
1. (i) These Regulations shall be called the Foreign Exchange Management (Transfer or issue of any Foreign Security) (Third Amendment) Regulations, 2009.
(ii) These Regulations shall be deemed to have come into effect from the 6th day of September, 2006.*
 

Amendment of Regulation 6

2. In the Foreign Exchange Management (Transfer or issue of any Foreign Security) Regulations,
2004, (Notification No. FEMA 120/RB-2004, dated July 7, 2004), hereinafter referred as the
principal regulations.
In Regulation 6 in clause (1), for the brackets, figures and words ‘(and Regulation 7 in case
investment in financial services sector)’ the brackets, figures and words ‘(and Regulation 7 in
case investment by an Indian Party engaged in financial services sector)’ shall be substituted.
 

Amendment of Regulation 7
3. In the principal Regulations, in Regulation 7,— (i) For the title, the following new title shall be substituted, namely,— “Investment by Indian Party engaged in Financial Services Sector.”

(ii) For sub-regulation (1), the following shall be substituted, namely :—  “(1) Subject to the Regulations in Part I, an Indian Party engaged in financial services sector in India may make investment in an entity outside India.”

*It is clarified that no person will be adversely affected as a result of retrospective effect being
given to these regulations.