AP (DIR Series) (2002-2003) Circular No. 28, dated 3-10-2002
Opening, holding and maintaining Foreign Currency Account in India by Unit in Special Economic Zones (SEZs)
Attention
of authorised dealers is invited to Notification No.FEMA.37/2001-RB dated
February 27, 2001 relating to Foreign Exchange Management (Foreign Currency
Account by a Person Resident in India) Regulations, 2000 which has been amended
by Notification No.FEMA.63/2002-RB dated June 21, 2002 (copy enclosed).
2. In terms of
paragraph 6A of the aforesaid notification, a unit located in a Special
Economic Zone may be allowed to open, hold and maintain a Foreign Currency
Account with an authorised dealer in India subject to the conditions stipulated
in the Notification.
3. Paragraph
5 in the Schedule of the aforesaid regulation relating to special provision for
EEFC Account of a unit in a Special Economic Zone stands deleted.
4. Authorised
Dealers may please bring the contents of this circular to the notice of their
constituents concerned.
5. The
directions contained in this circular have been issued under section 10(4) and
section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).