Fema / RBI News, Articles, Notifications and Forms

  • Jan
  • 31
  • 2015

RBI Notification on Entry of Banks into Insurance Business

Added In RBI / FEMA
With the objective of increasing insurance penetration using the entire network of bank branches, the Finance Minister in the budget speech 2013-14 announced that banks will be permitted to act as insurance brokers. Consequent to the announcement, IRDA formulated and notified the IRDA (Licensing of Banks as Insurance Brokers) Regulations, 2013 to enable banks to take up the business of insurance broking departmentally.

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  • Jan
  • 27
  • 2015

RBI reviews ODI provisions by a proprietorship concern/ unregistered partnership firm in India

Added In RBI / FEMA
Subsequent to amending the FEMA (Transfer or Issue of any Foreign Security) (Amendment) Regulations, 2004 (ODI guidelines) with respect to Overseas Direct Investments by proprietorship concern / unregistered partnership firm in India

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  • Jan
  • 26
  • 2015

SEBI considers amending SEBI (ICDR) Regulations to align with FEMA Regulations

Added In RBI / FEMA
Securities and Exchange Board of India (hereinafter known as SEBI) in its Board Meeting held on 21st January, 2015 has approved proposal to carry out some amendments in SEBI (ICDR) Regulations, 2009 ( Regulations, 2009) with FEMA Act so as to harmonize the norms on receipt of upfront payment and tenure of partly paid shares / warrants.

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  • Jan
  • 22
  • 2015

Salient features of ‘Depository Receipts Scheme, 2014’

Added In RBI / FEMA
A new scheme called ‘Depository Receipts Scheme, 2014’ (DR Scheme, 2014) for investments under ADR/GDR have been notified by the Central Government effective from December 15, 2014 which provides for repeal of extant guidelines for Foreign Currency Convertible Bonds and Ordinary Shares (Through Depositary Receipt Mechanism) Scheme, 1993 except to the extent relating to foreign currency convertible bonds.

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  • Jan
  • 22
  • 2015

What Bank Should disclose while grating credit Facility& on website?

Added In RBI / FEMA
Banks should provide a clear, concise, one page key fact statement/fact sheet, as per prescribed format in Annex, to all individual borrowers at every stage of the loan processing as well as in case of any change in any terms and conditions. The same may also be included as a summary box to be displayed in the credit agreement.

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  • Jan
  • 22
  • 2015

FEMA terms for ODI by proprietorship concern / unregistered partnership firm in India

Added In RBI / FEMA
Keeping in view the changes in the definition / classification of the exporters as per the Foreign Trade Policy of the Ministry of Commerce and Industry issued from time to time, it has been decided to review the policy framework for Overseas Direct Investments (ODI) by a proprietorship concern / unregistered partnership firm in India.

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  • Jan
  • 22
  • 2015

FEMA Rules- Remittance of salary outside India to employees on deputation

Added In RBI / FEMA
The Reserve Bank of India (RBI) vide A.P. (DIR Series) Circular No.62 dated January 22, 2015 has extended the availability of benefit conferred under Regulation 7(8) of Notification No. FEMA 10/2000-RB dated May 3, 2000 to an Employee of foreign company or Limited Liability Partnership, who in citizen of Foreign State, and is deputed to a group company in India.

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  • Jan
  • 16
  • 2015

Review of Guidelines on Restructuring of Advances by NBFCs

Added In RBI / FEMA
In terms of extant instructions contained in the above mentioned circulars, revisions of the date of commencement of commercial operations (DCCO) and consequential shift in repayment schedule for equal or shorter duration (including the start date and end date of revised repayment schedule) will not be treated as restructuring provided that:

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  • Jan
  • 16
  • 2015

Entry of Banks into Insurance Business – RBI Guidelines

Added In RBI / FEMA
Banks are not allowed to undertake insurance business with risk participation departmentally and may do so only through a subsidiary/JV set up for the purpose. Banks which satisfy the eligibility criteria (as on March 31 of the previous year) given below may approach Reserve Bank of India to set up a subsidiary/joint venture company for undertaking insurance business with risk participation:

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  • Jan
  • 15
  • 2015

Role of Audit Committees in Financial Conglomerates

Added In RBI / FEMA
We all know that in addition to the Management, companies also need a governance framework primarily with a view to preserving the shareholder value. There are some major landmarks that defined the role of Audit Committees in augmenting the Governance aspects in companies.

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