Fema / RBI : The 2026 FEMA amendment removes uncertainty surrounding INR borrowings by resident individuals from NRIs and OCI relatives. The RB...
Fema / RBI : Explains how ECBs allow Indian entities to borrow abroad while ensuring compliance with RBI rules. Key takeaway: growth is enabled...
Fema / RBI : Expanding overseas is easier under new rules, but compliance risks remain. Missing filings or structuring errors can trigger penal...
Fema / RBI : The issue concerns alternative settlement mechanisms for international trade. The framework allows INR-based transactions with fle...
Goods and Services Tax : ECGC payouts in INR do not qualify as export proceeds under GST and FEMA laws. Exporters must secure AD bank write-offs to avoid r...
Corporate Law : Authorities found Dubai property acquisitions by Indian residents routed through hawala, leading to action for violations of FEMA ...
Fema / RBI : BCAS submits comments on RBI’s draft External Commercial Borrowings (ECB) regulations, seeking clarity on eligibility, KYC norms...
Fema / RBI : BCAS provides feedback on draft FEMA trade regulations, flags concerns over AD bank powers, seeks clarity and consistency....
Fema / RBI : New FEMA rules allow settlement of foreign exchange violations with penalties up to ₹5 crore. Pending cases will follow earlier ...
Fema / RBI : The Government amended FEMA regulations, enabling resolution of violations up to ₹5 crore by paying fines. Ongoing cases follow ...
Corporate Law : The Appellate Tribunal under SAFEMA held that routing demonetized cash through another person’s bank account constituted a benam...
Fema / RBI : The issue was whether properties purchased using company funds could escape benami classification. The Tribunal held that unexplai...
Fema / RBI : The Tribunal ruled that transactions predating the alleged crime cannot be treated as proceeds of crime without a clear link. It s...
Fema / RBI : The issue was whether properties unconnected to crime could be attached under PMLA. The Tribunal held that equivalent value assets...
Fema / RBI : The Tribunal ruled that taxation of income does not negate its use in benami transactions. Even disclosed or assessed income can f...
Fema / RBI : RBI has withdrawn the requirement for prior approval of tie-ups between AD banks and non-bank remittance platforms. The new framew...
Fema / RBI : RBI has notified Foreign Exchange Management (Authorised Persons) Regulations, 2026 to streamline authorisation norms under FEMA. ...
Fema / RBI : RBI notified the Foreign Exchange Management (Authorised Persons) Regulations, 2026 introducing revised eligibility, compliance, a...
Fema / RBI : The issue involved foreign investment limits in the insurance sector under FEMA regulations. The amendment allows up to 100% FDI u...
Fema / RBI : The issue involved foreign investment from countries sharing land borders with India. The amendment mandates Government approval f...
The Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce & Industry, Government of India has been updating/notifying the FDI policy through issue of Consolidated FDI Policy Circular. Accordingly, Government has notified the latest FDI policy changes vide FDI Policy Circular 1 of 2012 dated April 10, 2012 and the same is available at Government website www.dipp.gov.in. In order to bring uniformity in the sectoral classification position for FDI as notified under the Consolidated FDI Policy Circular with the FEMA Regulation, the revised position on Annex A and Annex B of Schedule 1 to Notification No. FEMA 20/2000-RB dated 3rd May 2000, has been suitably revised and is enclosed.
Rule 2 (1) (b) provides the qualification to be a Member. Needless to say, the same is in total accord with the Act. The first proviso to Rule 5 introduces part time Member. We have held that the said proviso, as far as it introduces the concept of part time Member, is contrary to the provision contained in the enabling Act. Section 46 of the Act nowhere envisages about the part time Members.
Government Securities: . Currently FIIs are allowed to invest US$5 billion in Government Securities that have residual maturity of over five years. It has now been modified to reduce the residual maturity to three years. 2. An additional window of US$5 billion would be available for FII investment in Government Securities subject to residual maturity of three years. 3. The above modifications would now make available to FIIs a total limit of US$10 billion subject to residual maturity of three years.
It has been decided to allow Indian companies in manufacturing and infrastructure sector and having foreign exchange earnings to avail of external commercial borrowing (ECB) for repayment of outstanding Rupee loans towards capital expenditure and/or fresh Rupee capital expenditure under the approval route. The overall ceiling for such ECBs would be USD 10 billion.
Attention of the Authorised Dealer (AD) Category – I banks is invited to A. P. (DIR Series) Circular No.45 dated March 15, 2011 wherein, it was, inter-alia, stipulated that the annual return on Foreign Liabilities and Assets (FLA) is required to be submitted directly by all the Indian companies which have received FDI and/or made FDI abroad (i.e. overseas investment) in the previous year(s) including the current year, to the Director, External Liabilities and Assets Statistics Division, Department of Statistics and Information Management (DSIM), Reserve Bank of India, C-8, 3rd floor, Bandra Kurla Complex, Bandra (E), Mumbai – 400 051, by July 15 of every year.
In the Budget 2011-12, the Government, for the first time, permitted Qualified Foreign Investors (QFIs), who meet the KYC norms, to directly invest in Indian Equity Mutual Fund (MF) schemes and in MF debt schemes that invest in infrastructure. It was for the first time that this new class of investors was allowed to directly participate in the Indian capital market. In January 2012, the Government expanded this scheme to allow QFIs to directly invest in Indian Equity Markets.
It has now been decided to communicate the UIN in respect of cases under the Automatic Route to the ADs/Indian Party through an auto generated e-mail to the email-id made available by the AD/Indian Party. Accordingly, with effect from June 01, 2012 (Friday), the auto generated e-mail, giving the details of UIN allotted to the JV / WOS under the automatic route, shall be treated as confirmation of allotment of UIN, and no separate letter shall be issued by the Reserve Bank to the Indian party and AD Category – I bank confirming the allotment of UIN.
The Authorised Officer shall, on receipt of a written application by or on behalf of the domestic producer of like goods or directly competitive goods, initiate an investigation to determine the existence of serious injury or threat of serious injury to the domestic industry, caused by the import of a goods in such increased quantities, absolute or relative to domestic production.
Based on various queries received from Authorised Dealers, it is clarified that the conversion of the EEFC balances into rupee balances will only be applicable to available balances in the EEFC account which may be arrived at by netting off earmarked amounts on account of outstanding forward / option contracts booked before May 10, 2012.
It is clarified that the activity ‘leasing and finance’, which is one among the eighteen NBFC activities wherein FDI up to 100 per cent is permitted under the automatic route, subject to minimum capitalisation norms, covers only ‘financial leases’ and not ‘operating leases’, in so far as the NBFC sector is concerned.
