Special Economic Zones Rules, 2006 Amended

International Finance Centre excluded from SEZ Rules, SEBI and IRDA Special Rules to Apply

[MoE&I Notification dated 31.12.2019]

G.S.R. 12(E).—In exercise of the powers conferred by section 55 of the Special Economic Zones Act, 2005 (28 of 2005), the Central Government hereby makes the following rules further to amend the Special Economic Zones Rules, 2006, namely:—

1. Short title and commencement. - (1) These rules may be called the Special Economic Zones (4th Amendment) Rules, 2019.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Special Economic Zones Rules, 2006, after rule 53, following rule shall be inserted, namely:—

‘53A. Exemption.- Nothing contained in rule 53 shall apply,-

a. to a Unit in an International Financial Service Centre set up as Alternate Investment Fund or Mutual Fund to the extent of any inflow of investible funds from investors, any investments made from such investible funds and returns on them inclusive of principal return and any return paid to investors from such investments including the original investment:

Provided that the net foreign exchange of a Unit in an International Financial Service Centre set up as Alternate Investment Fund or Mutual Fund shall be determined in combination with the net foreign exchange of the Fund Manager entity to the extent the investible funds of the Alternate Investment Fund or Mutual Fund is being managed by such Fund Manager entity.

Explanation: For the purposes of this clause,-

(a) “Alternate Investment Fund" shall have the same meaning as assigned to it in the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012;

(b) “Mutual Fund’’ shall have the same meaning as assigned to it in the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996;

b. to a Unit in an International Financial Service Centre set up as an International Financial Service Centre Insurance Office to the extent of the portion of premium income over and above the amount retained for management expenses within the maximum rate stipulated for expenses of management by the Insurance Regulatory and Development Authority under the Insurance Regulatory and Development Authority of India {Registration and Operations of International Financial Service Centre Insurance Offices (IIO)} Guidelines, 2017, Investment made from the said portion of premium income and returns on them, inclusive of principal return and any amount paid towards insurance or reinsurance claims.’.

[F. No. D.12/25/2009-SEZ]