Category Archives: FEMA

FEM Manual With FEMA & FDI Ready Reckoner (2 Volumes)-2017 Edition Book

By | March 25, 2017

Foreign Exchange Management Manual With FEMA & FDI Ready Reckoner (Set of 2 Volumes) (30th Edition 2017) Paperback – 2017 by Editor (Author) Volume 1 : Foreign Exchange Management Act, Rules & Regulations Framed under FEMA, Notifications issued under FEMA, Master Directions, Memorandum of Instructions , Law Relating to Foreign Contributions & Prevention of Money Laundering,… Read More »

Non Resident can enter into foreign exchange derivative contract with bank in India to hedge an exposure

By | March 20, 2017

RESERVE BANK OF INDIA (Financial Markets Regulatory Department) (CENTRAL OFFICE) NOTIFICATION Mumbai, the 17th March, 2017 No. FEMA. 384/RB-2017 Foreign Exchange Management (Foreign Exchange Derivative Contracts) (Amendment) Regulations, 2017 G.S.R. 260(E).—In exercise of the powers conferred by clause (h) of sub-section (2) of section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999),… Read More »

FEMA & FDI Ready Reckoner 2017 by V.S. Datey

By | January 19, 2017

FEMA & FDI Ready Reckoner (January 2017 Edition) Paperback – 2017 by V.S. Datey (Author) Buy FEMA & FDI Ready Reckoner (January 2017 Edition) Paperback: 368 pages Publisher: Taxmann Publications Pvt. Ltd.; 2017 Edition edition (2017) Language: English Contents of FEMA & FDI Ready Reckoner (January 2017 Edition)

Issue of Convertible Notes by Indian startup companies -FEMA regulations 2016 notified

By | January 12, 2017

RESERVE BANK OF INDIA (Foreign Exchange Department) (CENTRAL OFFICE) NOTIFICATION Mumbai, the 10th January, 2017 No.FEMA.377/ 2016-RB Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Fifteenth Amendment) Regulations, 2016 G.S.R. 16 (E).—In exercise of the powers conferred by clause (b) of sub-section (3) of Section 6 and Section 47… Read More »

No direct investment by Indian Party in overseas entities located in non co-operative countries

By | January 6, 2017

No direct investment in overseas entities located in non co-operative countries FEM (TRANSFER OR ISSUE OF ANY FOREIGN SECURITY) (SECOND AMENDMENT) REGULATIONS, 2016 – AMENDMENT IN REGULATION 6 NOTIFICATION NO.FEMA.382/2016-RB/GSR 01(E), DATED 2-1-2017 In exercise of the powers conferred by clause (a) of sub-section (3) of section 6 and sub-section (2) of section 47 of… Read More »

Indian Govt. allows 49% foreign investment in pension sector under automatic route

By | November 7, 2016

RESERVE BANK OF INDIA (Foreign Exchange Department) (CENTRAL OFFICE) NOTIFICATION Mumbai, the 4th November, 2016 No. FEMA. 379/ 2016-RB Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Sixteenth Amendment) Regulations, 2016 G.S.R. 1042(E).—In exercise of the powers conferred by clause (b) of sub-section (3) of Section 6 and Section… Read More »

FEM Manner of receipt and payment Regulations 2016

By | October 20, 2016

Foreign Exchange Management (Manner of receipt and payment) Regulations, 2016 RBI/2016-17/93 A.P. (DIR Series) Circular No. 11 [(1)/14(R)] October 20, 2016 To All Category – I Authorised Dealer Banks Madam/Sir, Foreign Exchange Management (Manner of receipt and payment) Regulations, 2016 Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to A.D.(M.A. Series) Circular No.… Read More »

RBI Master Direction on Reporting under FEMA 1999

By | September 20, 2016

Master Direction – Reporting under Foreign Exchange Management Act, 1999 (Updated as on September 19, 2016) RBI/FED/2015-16/13 FED Master Direction No.18/2015-16 January 1, 2016 (Updated as on September 19, 2016) (Updated as on July 07, 2016*) (Updated as on June 13, 2016*) (Updated as on May 24, 2016*) (Updated as on May 18, 2016*) (Updated… Read More »

788 Companies under DRI Scanner for export proceeds pending for realisation

By | July 21, 2016

SIT directs Enforcement Directorate to take necessary action under FEMA with respect to 216 Companies with respect to the period before 1st March, 2016 and 572 Companies for the period after 1st March, 2016 for which each such Company had export proceeds pending for realisation for more than Rs. 100 crore; SIT also directed Directorate… Read More »

What is Exchange Earner’s Foreign Currency (EEFC) Account ?

By | July 10, 2016

What is Exchange Earner’s Foreign Currency (EEFC) Account ? Q 1. What is an EEFC Account and what are its benefits? Ans. Exchange Earners’ Foreign Currency Account (EEFC) is an account maintained in foreign currency with an Authorised Dealer Category – I bank i.e. a bank authorized to deal in foreign exchange. It is a… Read More »

RBI Master Direction on Risk Management and Inter-Bank Dealings

By | July 6, 2016

RBI/FMRD/2016-17/31 FMRD Master Direction No. 1/2016-17 July 5, 2016 To, All Authorised Dealers – Category I Banks Madam / Sir, Master Direction – on Risk Management and Inter-Bank Dealings In exercise of the powers conferred by clause (h) of sub-section (2) of section 47 of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999),… Read More »

Foreign Currency received without RBI approval to be confiscated : Supreme Court

By | June 21, 2016

SUPREME COURT OF INDIA Jatin C. Jhaveri v. Union of India T.S. THAKUR, CJI. AND UDAY UMESH LALIT, J. CIVIL APPEAL NOS. 11127 TO 11131 OF 2011 MAY  13, 2016 Ramesh P. Bhatt, K. Radha Krishnan, Sr. Advs., Bhargava V. Desai, B. Krishna Prasad, S. Ratin Rai, S.W.A. Quadriand B.K. Prasad, Advs. for the Appearing… Read More »

FEM Foreign Currency Accounts by person resident in India amendment Regulations 2016

By | June 8, 2016

RESERVE BANK OF INDIA (Foreign Exchange Department) (CENTRAL OFFICE) Notification No. FEMA 10(R)/(1)/2016-RB Mumbai, the 1st June, 2016 Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) (Amendment) Regulations, 2016 G.S.R. 570(E).—In exercise of the powers conferred by Section 9 and clause (e) of sub-section (2) of section 47 of the Foreign… Read More »

FEM Foreign Exchange Derivative Contracts Regulations 2016

By | June 8, 2016

RESERVE BANK OF INDIA (Financial Markets Regulation Department) (CENTRAL OFFICE) NOTIFICATION Mumbai, the 1st June, 2016 No. FEMA. 365/2016-RB Foreign Exchange Management (Foreign Exchange Derivative Contracts) (Amendment) Regulations, 2016 G.S.R. 571(E).—In exercise of the powers conferred by clause (h) of sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999),… Read More »

Public disclosure of Compounding Orders under FEMA

By | May 27, 2016

RBI/2015-16/412 A.P. (DIR Series) Circular No.73 May 26, 2016 To All Category – I Authorised Dealer Banks Madam / Sir, Foreign Exchange Management Act, 1999 (FEMA) Foreign Exchange (Compounding Proceedings) Rules, 2000 (the Rules) – Compounding of Contraventions under FEMA, 1999 Attention of Authorised Dealers is invited to paragraph number 7 and 8 of the… Read More »

Share Transfer to Non resident : RBI Relaxes Payment norms under FEMA

By | May 25, 2016

NOTIFICATION NO.FEMA.368/2016-RB/GSR 537(E), DATED 20-5-2016 In exercise of the powers conferred by clause (b) of sub-section (3) of section 6 and section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank of India hereby makes the following amendments in the Foreign Exchange Management (Transfer or Issue of Security by a… Read More »

Power of search, seizure, etc. under FEMA

By | May 16, 2016

Section – 37, Foreign Exchange Management Act, 1999 Power of search, seizure, etc. 37. (1) The Director of Enforcement and other officers of Enforcement, not below the rank of an Assistant Director, shall take up for investigation the contravention referred to in section 13. (2) Without prejudice to the provisions of sub-section (1), the Central… Read More »

FEM Manner of Receipt and Payment Regulations 2016

By | May 10, 2016

RESERVE BANK OF INDIA FOREIGN EXCHANGE DEPARTMENT CENTRAL OFFICE MUMBAI 400 001 Notification No. FEMA 14(R)/2016-RB May 02, 2016 Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2016 In exercise of the powers conferred by Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), and in supersession of Notification No. FEMA.14/… Read More »

EXPORT OF GOODS & SERVICES REGULATIONS 2015

By | May 9, 2016

FEM (EXPORT OF GOODS & SERVICES) REGULATIONS, 2015 NOTIFICATION [NO.FEMA 23(R)/2015-RB]/GSR 19(E), DATED 12-1-2016 In exercise of the powers conferred by clause (a) of sub-section (1), sub-section (3) of section 7 and sub-section (2) of section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999) and in supersession of its Notification No.FEMA.23/2000-RB dated May… Read More »

REPORTING UNDER FETERS (Foreign Exchange Transactions Electronic Reporting System)

By | May 9, 2016

COMPILATION OF R-RETURNS  FOR REPORTING UNDER FETERS A.P. (DIR SERIES 2015-16) CIRCULAR NO.50, DATED 11-2-2016 Attention of Authorised Dealer (Category I) banks is invited to A.P.(DIR Series) Circular No.84 dated February 29, 2012 giving guidelines for compilation of R-Returns for reporting under the Foreign Exchange Transactions Electronic Reporting System (FETERS), A.P.(DIR Series) Circular No.101 dated February… Read More »

Remittance of Assets regulations 2016 Features

By | April 28, 2016

RBI/2015-16/384 A.P. (DIR Series) Circular No. 64/2015-16 [(1)/13(R)] April 28, 2016 To All Category – I Authorised Dealer and Authorised Banks Madam/ Sir Foreign Exchange Management (Remittance of Assets) Regulations, 2016 Attention of Authorised Dealers (ADs) is invited to (a) A.D. (M.A. Series) Circular No. 11 dated May 16, 2000 in terms of which ADs… Read More »

Foreign contribution to be reported in 48 hour by Banks

By | April 27, 2016

Changes in FCRA As per Foreign Contribution (Regulation) Amendment Rules, 2015 notified in Gazette of India on 14.12.2015, the Bank shall report to the Central Government within forty-eight hours any transaction in respect of receipt and utilization of any foreign contribution by any person whether or not such person is registered or granted prior permission… Read More »

Adjudicating Authority under FEMA

By | April 18, 2016

Section – 16, Foreign Exchange Management Act, 1999 ADJUDICATION AND APPEAL Appointment of Adjudicating Authority. 16. (1) For the purpose of adjudication under section 13, the Central Government may, by an order published in the Official Gazette (see  Notification Nos. SO 535(E), dated 1-6-2000 and SO 1155(E), dated 26-12-2000.) , appoint as many officers of the… Read More »

FEMA Remittance of Assets Regulations 2016

By | April 2, 2016

THE GAZETTE OF INDIA EXTRAORDINARY [PART II—SEC. 3(i)] RESERVE BANK OF INDIA (Foreign Exchange Department) (CENTRAL OFFICE) NOTIFICATION Mumbai, the 1st April, 2016 No. FEMA 13 (R)/2016-RB Foreign Exchange Management (Remittance of Assets) Regulations, 2016 G.S.R. 388(E).—In exercise of the powers conferred by Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999)… Read More »

RBI rationalises FEMA Regulations

By | February 5, 2016

Source  :Reserve Bank of India Date : Feb 04, 2016 The Reserve Bank of India, in consultation with the Government of India, has revised nine regulations issued under the Foreign Exchange Management Act, 1999 (FEMA). Consequently, the respective original notifications and subsequent amendments stand repealed. For easy identification, revised regulations will carry the same numbers… Read More »

Regulations for Transfer of Immovable Property outside India

By | February 5, 2016

Source : Reserve Bank of India RBI/2015-16/308 A.P. (DIR Series) Circular No. 43/2015-16 [(1)/7(R)] February 04, 2016 To All Category – I Authorised Dealer and Authorised Banks Madam/ Sir Foreign Exchange Management (Acquisition and Transfer of Immovable Property outside India) Regulations, 2015 Attention of Authorised Dealers (ADs) is invited to A.D.(M.A. Series) Circular No. 11… Read More »

Foreign currency accounts by person resident in India

By | February 5, 2016

Source : Reserve Bank of India RBI/2015-16/309 A.P. (DIR Series) Circular No.44/2015-16 [(1)/10(R)] February 04, 2016 To All Category – I Authorised Dealers and Authorised Banks Madam/ Sir Foreign Exchange Management (Foreign currency accounts by a person resident in India) Regulations, 2015 Attention of Authorised Dealers (ADs) is invited to A.D.(M.A. Series) Circular No. 11… Read More »

Limits for Possession and retention of Foreign Currency

By | February 5, 2016

Source : Reserve Bank of India RBI/2015-16/312 A.P. (DIR Series) Circular No.47/2015-16 [(1)/11(R)] February 04, 2016 To All Category – I Authorised Dealers and Authorised Banks Madam/ Sir Foreign Exchange Management (Possession and Retention of Foreign Currency) Regulations, 2015 Attention of Authorised Dealers (ADs) is invited to Foreign Exchange Management (Possession and Retention of Foreign… Read More »

RBI Amends regulations for Foreign Currency Accounts by person resident in India

By | January 28, 2016

THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] RESERVE BANK OF INDIA (Foreign Exchange Department) NOTIFICATION Mumbai, the 21st January, 2016 No. FEMA 10(R)/2015—RB Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) Regulations, 2015 G.S.R. 96(E).—In exercise of the powers conferred by Section 9 and clause (e) of sub-section (2)… Read More »

Indian Resident may acquire property outside India jointly with relative

By | January 28, 2016

THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] RESERVE BANK OF INDIA (Foreign Exchange Department) CENTRAL OFFICE NOTIFICATION Mumbai , the 21st January 21, 2016 No. FEMA 7(R)/2015—RB G.S.R. 95(E).—In exercise of the powers conferred by clause (h) of sub-section (3) of Section 6, sub-section (2) of Section 47 of the Foreign Exchange Management… Read More »

RBI Master Direction on Compounding of Contraventions under FEMA 1999

By | January 5, 2016

RBI/FED/2015-16/1 FED Master Direction No.4/2015-16 January 1, 2016 To, All Authorised Dealer Category – I banks and Authorised banks Madam / Sir, Master Direction- Compounding of Contraventions under FEMA, 1999 The provisions of section 15 of Foreign Exchange Management Act, 1999 (42 of 1999) hereinafter referred to as FEMA, 1999, permit compounding of contraventions and,… Read More »

RBI Master Direction for ECB , Trade Credit ,Borrowing and Lending in Foreign Currency by Authorised Dealers and Persons other than Authorised Dealers

By | January 5, 2016

RBI/FED/2015-16/15 FED Master Direction No.5/2015-16 January 1, 2016 To All Authorised Dealer Category – I banks and Authorised Banks Madam / Dear Sir, Master Direction – External Commercial Borrowings, Trade Credit, Borrowing and Lending in Foreign Currency by Authorised Dealers and Persons other than Authorised Dealers Transactions on account of External Commercial Borrowings (ECB) and… Read More »

RBI Master Direction for Reporting under FEMA 1999

By | January 5, 2016

RBI/ FED/ 2015-16/13 FED Master Direction No. 18/ 2015-16 January 1, 2016 To, All Authorised Persons Madam/ Sir, Master Direction – Reporting under Foreign Exchange Management Act, 1999 Foreign Exchange Management Act, 1999 (FEMA) is administered through the authorised persons and is based on the declarations and averments made to them by persons while undertaking… Read More »

No bail if no grounds available for believing that applicant not guilty of offence under section 45 of the Prevention of Money Laundering Act

By | December 25, 2015

HIGH COURT OF GUJARAT Afroz Mohmad Hasanfatta v. Deputy Director MS. HARSHA DEVANI, J. CRIMINAL MISC. APPLICATION (FOR REGULAR BAIL) NO. 17000 OF 2014 OCTOBER  5, 2015 P.M. Thakkar, Sr. Advocate and R.J. Goswami, Advocate for the Applicant. Devang Vyas and Ms. Trusha K. Patel, Advocate for the Respondent. JUDGMENT 1. By this application under… Read More »

Transfer or Issue of Security by a Person Resident outside India

By | November 6, 2015

RESERVE BANK OF INDIA (FOREIGN EXCHANGE DEPARTMENT) CENTRAL OFFICE NOTIFICATION Mumbai, the 30th October, 2015 No. FEMA.354/2015-RB Foreign Exchange Management  (Transfer or Issue of Security by a Person Resident outside India) (Tenth Amendment) Regulations, 2015 G.S.R. 823(E).—In exercise of the powers conferred by clause (b) of sub-section (3) of Section 6 and Section 47 of… Read More »

FAQ’s on Overseas Direct Investments

By | November 3, 2015

(Updated upto October 13, 2015) Q.1. What is the significance of overseas direct investments for the country and for the investor? A. Joint Ventures/Wholly Owned Subsidiaries abroad promote economic co-operation between India and the host countries. They result in transfer of technology and skills, sharing the results of Research & Development, access to the global… Read More »

REVIEW OF EXISTING FOREIGN DIRECT INVESTMENT POLICY ON PARTLY PAID SHARES AND WARRANTS

By | October 15, 2015

REVIEW OF EXISTING FOREIGN DIRECT INVESTMENT POLICY ON PARTLY PAID SHARES AND WARRANTS – AMENDMENT IN PARA 2.1.5 AND INSERTION OF PARA 3.3.3 OF CONSOLIDATED FDI POLICY CIRCULAR OF 2015 PRESS NOTE NO. 9 (2015 SERIES), DATED 15-9-2015 1. The Government has reviewed the provisions of the extant FDI policy on the captioned subject and… Read More »

ADDITIONAL DOCUMENTS FOR PROOF OF ADDRESS FOR PREVENTION OF MONEY LAUNDERING

By | October 10, 2015

AMENDMENT TO PREVENTION OF MONEY LAUNDERING (MAINTENANCE OF RECORDS) RULES, 2005 – ADDITIONAL DOCUMENTS FOR LIMITED PURPOSE OF PROOF OF ADDRESS CIRCULAR DBR.AML.BC.NO.104/14.01.001/2014-15, DATED 11-6-2015 Please refer to Rule 14(i) and proviso to Rule 2(d) at Sr.No.4 of Annex to our circular DBOD.AML.BC.No.26/14.01.001/2014-15 dated July 17, 2014, on the applicability of ‘simplified measures’ to verify… Read More »

FOREIGN INVESTMENT IN INDIA

By | October 10, 2015

FOREIGN INVESTMENT IN INDIA MASTER CIRCULAR NO.15/2015-16, DATED 1-7-2015 Foreign investment in India is governed by sub-section (3) of Section 6 of the Foreign Exchange Management Act, 1999 read with Notification No. FEMA 20/2000-RB dated May 3, 2000, as amended from time to time. The regulatory framework and instructions issued by the Reserve Bank have… Read More »

No seizure of assets in India if value of foreign asset acquired in breach of FEMA is below 1 crore

By | October 8, 2015

MINISTRY OF FINANCE (Department of Revenue) NOTIFICATION New Delhi, the 16th September, 2015 G.S.R. 701(E).—In exercise of the powers conferred by the proviso to sub-section (1) of Section 37A of the Foreign Exchange Management Act, 1999 (42 of 1999), the Central Government hereby prescribes the mandatory threshold of the aggregate value of Foreign Exchange, Foreign… Read More »

INVESTMENT IN SHARES OUTSIDE INDIA

By | August 15, 2015

INVESTMENT IN SHARES OUTSIDE INDIA INVESTMENT IN FOREIGN SECURITY Question : What are the types of Investment in foreign security ? Transfer or issue of foreign security has three aspects. – (a) Issue of ADR/GDR/FCCB (b) Investment in Joint Venture/Wholly Owned Subsidiary abroad (JV/WOS) (c) Investment by Indian resident or body corporate. Provisions relating to all… Read More »

LENDING IN FOREIGN CURRENCY

By | August 14, 2015

LENDING IN FOREIGN CURRENCY Question: Who can lend in Foreign Currency ? A ) Lending by Authorised Dealers Provisions are contained in Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000. If the required conditions are not satisfied, borrowing or lending is permissible only with permission of RBI. An authorised dealer in India… Read More »