Ministry of Commerce and Industry has issued the Special Economic Zones (4th Amendment) Rules, 2019 on 31st December, 2019. The amendment has provided exemption to Mutual Funds(MF) and Alternative Investment Funds (AIF) from complying with the requirement ti achieve Positive Net Foreign Exchange to be calculated cumulatively for a period of five years from the commencement of production.
The amendment has added a new rule – Rule 53A – which provides exemption to the requirement under Rule 53 imposed on all units in a special economic zone carrying out foreign transactions. The exemption is granted to a Unit in an International Financial Service Center set up as Alternate Investment Fund or Mutual Fund subject to conditions provided in the Rule.
Click here to read the Amendment.