Derecognition of Overseas Corporate Bodies (OCBs)

A.P. (DIR Series) (2003-2004) Circular No. 44, dated 8-12-2003

Attention of Authorised Dealers is invited to A.P. (DIR Series) Circular No. 14 dated September 16, 2003 conveying the decision to derecognise the Overseas Corporate Bodies (OCBs) in India as an eligible ‘class of investor’ under various routes/schemes available under extant Foreign Exchange Management Regulations.

2. In this connection, in exercise of the powers conferred under section 6 read with section 47 of the Foreign Exchange Management Act, 1999, the Reserve Bank has issued Foreign Exchange Management [Withdrawal of General Permission to Overseas Corporate Bodies (OCBs)] Regulations, 2003 which are notified vide Notification No. FEMA 101/2003-RB dated October 3, 2003. The facilities for OCBs under various Foreign Exchange Management Regulations thus stand withdrawn. A copy of the said Notification is enclosed.

3. Authorised Dealers may bring the contents of this circular to the notice of their constituents and customers concerned.

4. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999.