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Fema / RBI : RBI has withdrawn the requirement for prior approval of tie-ups between AD banks and non-bank remittance platforms.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...
Government has constituted a four-member committee headed by Economic Affairs Secretary Arvind Mayaram for giving clear definitions to Foreign Direct Investment, FDI and foreign institutional investment , FII, with an aim to remove ambiguity over the two types of foreign investments. The DIPP Secretary, an RBI Deputy Governor and a SEBI Wholetime Member are the […]
ADR’S, GDR’S: These are commonly known as Depository Receipts (‘DR’), a negotiable security issued outside India by a depository bank (‘DB’), on behalf of the Indian company, which reflects the local rupee denominated equity shares of the company held as deposit by a custodian bank (‘CB’) in India. These DR’s were bought out as an option for Indian companies to get an access to overseas capital markets.
On a review, it has been decided to enhance the ECB limit for NBFC-IFCs under the automatic route from 50 % of their owned funds to 75 % of their owned funds, including the outstanding ECBs. NBFC-IFCs desirous of availing ECBs beyond 75 % of their owned funds would require the approval of the Reserve Bank and will, therefore, be considered under the approval route.
The Central Government had permitted Foreign Direct Investment (FDI) in the equity capital of Asset Reconstruction Company (ARCs) upto 49% vide Press Release dated 08.11.2005. Further, on 09.11.2005, the Government permitted the Foreign Institutional Investors (FIIs) registered with the Securities and Exchange Board of India (SEBI) to invest in Security Receipts (SRs) issued by ARCs upto 49% of each tranche of scheme of SRs.
In terms of Regulation 6 (2) of the Notification ibid, “Notwithstanding anything contained in these Regulations, investment in Pakistan shall not be permitted.” It has now been decided that the overseas direct investment by Indian Parties in Pakistan shall henceforth be considered under the approval route under Regulation 9 of the Notification, ibid.
A person who is a citizen of Pakistan or an entity incorporated in Pakistan may, with the prior approval of the Foreign Investment Promotion Board of the Government of India, purchase shares and convertible debentures of an Indian company under Foreign Direct Investment Scheme, subject to the terms and conditions specified in Schedule 1 of the Notification, ibid, provided further that notwithstanding anything contained in Schedule I of the Notification, ibid, the Indian company, receiving such foreign direct investment, is not engaged or shall not engage in sectors / activities pertaining to defence,spaceandatomicenergyand sectors/ activities prohibited for foreign investment.
What is FDI? – FDI refers to Foreign Direct Investment in `equity share or fully and mandatorily convertible preference shares or fully and mandatorily convertible debentures’ (FDI Instruments) of an Indian company by non resident entities.
RBI FAQs ON DOMESTIC DEPOSITS, DEPOSITS OF NON-RESIDENTS INDIANS (NRIs), ADVANCES, ADVANCES AGAINST SHARES AND DEBENTURES, DONATIONS, LOANS FOR PREMISES AND SERVICE CHARGES Department of Banking Operations and Development Central Office I. DOMESTIC DEPOSITS Q 1. Whether banks can accept interest free deposits? Ans. Banks cannot accept interest free deposits other than in current account. […]
Present Position – As per paragraph 3.1.1 of ‘Circular 1 of 2012 – Consolidated FDI Policy’, effective from 10-4-2012, investment from a citizen of Pakistan or an entity incorporated in Pakistan is not permitted. 2.0 Revised Position – The Government of India has reviewed the policy, as contained in paragraph 3.1.1 of the circular ibid and decided to permit a citizen of Pakistan or an entity incorporated in Pakistan to make investments in India, under the Government route, in sectors/activities other than defence, space and atomic energy.
A.P. (DIR Series) Circular No. 138 Export-Import Bank of India (Exim Bank) has concluded an Agreement dated March 29, 2012 with the Government of the Republic of Zambia, making available to the latter, a Line of Credit (LOC) of USD 50 million (USD Fifty million) for financing eligible goods, services, machinery and equipments including consultancy services for the purpose of pre-fabricated health posts in the Republic of Zambia.
