May 2, 2000

A.D. (M.A. Series) Circular No.8

To

All Authorised Dealers in Foreign Exchange

Dear Sirs,

It has been decided to amend/modify the Exchange Control Regulations as in the folowing paragraph.

In terms of paragraph B.7 of Memorandum PEM, exporters after award of contracts abroad for supply contracts on deferred payment terms, turnkey projects or construction contracts are required to submit applications in Form DPX 3 or PEX 4, as the case may be to the authorised dealer for post award clearance, if the value of contract is upto Rs.25 crores and to Exim Bank through an authorised dealer if value of contract exceeds Rs.25 crores but is within Rs.100 crores for clearance. It has now been decided that the above value limits for clearance of post award proposals for authorised dealer should be raised from Rs.25 crores to Rs.50 crores and that for Exim Bank from Rs.100 crores to Rs.200 crores.

2. Necessary amendments to the Memorandum PEM will be advised separately.

3. Authorised dealers may bring the contents of this circular to the notice of their concerned constituents.

4. The directions contained in this circular have been issued under Section 73(3) of the Foreign Exchange Regulation Act, 1973 (46 of 1973) and any contravention or non-observance thereof is subject to the penalties prescribed under the Act.

Yours faithfully,

Chief General Manager