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Why Is the RBI and FEMA Compliance Service Necessary?
The flow of cash, services, and products over borders has become smoother in the modern globalized economy. Businesses must, however, negotiate a complicated web of laws and regulatory requirements that come with globalization. Following the rules established by the Foreign Exchange Management Act (FEMA) and the Reserve Bank of India (RBI) is legally required and […]
By admin
Last update on July 4,2024
Exploring the Benefits of FEMA Complaints Services in the USA
The operations of the Reserve Bank of India and FEMA are quite intricate, making it very challenging for firms and individuals to conduct business legally. Adherence to these regulations is equally important, but monitoring the constant changes in the rules and regulations can be a daunting task. That is exactly where our RBI/FEMA Expert Advisory […]
By CA. Sachin Jindal
Last update on June 26,2024
The Ripple Effect: How Non-Compliance with RBI and FEMA Can Impact Your Business
In the dynamic world of international trade, navigating the ever-evolving landscape of financial regulations can feel like walking a tightrope. In India, the Reserve Bank of India (RBI) and the Foreign Exchange Management Act (FEMA) play a critical role in regulating foreign exchange transactions and fostering financial stability. Understanding and complying with these regulations is […]
By CA. Sachin Jindal
Last update on June 26,2024
Party cannot take two remedies simultaneously against one and same order
The Appellant filed an appeal before the SEFEMA against the impugned order wherein a penalty of INR 50 Lakhs was imposed on the Appellant for violation of provisions of FEMA. After filing appeal, the Appellant kept on seeking adjournment from the Tribunal and filed the writ Petitioner before the High Court of Calcutta. While filing writ petition, the appellant suppressed the fact of pendency of appeal. Hon’ble High Court rejected the contention of the Appellant and upheld the impugned order. The High Court mentioned The impugned order is appealable. The petitioner has chosen not to prefer an appeal. The Petitioner chose to file the writ petition.
By CA. Kapil Mittal
Last update on June 18,2024
Penalty is imposed for delayed reporting of FDI as amended provisions maintained the reporting requirement
The Appellant, an Indian Company, received FDI of INR 204 Crores through automatic approval route. The Company was required to file the Advance Remittance Form (ARF) within 30 days of receipt of FDI. The Company delayed in reporting of FDI to RBI by 24 days. Therefore, the penalty was imposed on the company of INR 20 Crores and on the directors of INR 5 Crores.
By CA. Kapil Mittal
Last update on June 4,2024
Section 8 of FEMA 1999 provide for an exception to repatriate and realise the export proceeds in case of genuine default by the buyer
The Appellant exported 12 shipments and realised export proceeds for only 1 shipment out of 12 shipments. The Special Director, Enforcement Directorate imposed a penalty of INR 70 lakhs and INR 20 Lakhs on the appellant for contravention of Section 7 & 8 of FEMA, 1999. The appellant took all the reasonable steps to realise the export proceeds such as loding a complaint with Export Credit Guarantee Corporation (ECGC), Indian High Commission at Singapore, M/s Allen Gledhill Singapore the debt collecting agency and M/s Omega Alliance, Mumbai for debt collection. However, still could not realise export proceeds.
By CA. Kapil Mittal
Last update on May 21,2024
Foreign Portfolio Investment (FPI) in India
Similar to Foreign Direct Investment, Foreign Portfolio Investment (FPI) is a most explored way of investment in India. Foreign Portfolio Investment allows an investor to invest in multiple securities in foreign country such as shares, bonds, fixed deposits etc. Unlike FDI, investment in FPI is done for the purpose of getting return and not for the purpose of control. FPI is controlled in India through Security and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014.
By CA. Kapil Mittal
Last update on March 19,2024
Foreign Direct Investment in space Sector| Recent Amendments for FDI in Space sector
India is showing substantial development in the space sector. Considering the major development of India in the space sector, the government has approved amendments in FDI policies with respect to FDI in space sector.
By CA. Kapil Mittal
Last update on March 12,2024
Foreign Direct Investment (FDI) Policy in Broadcasting & Print Media
FDI for TV channel up-linking/down-linking shall be subject to compliance with relevant Ministry's policies. The foreign investment (FI) in companies offering aforementioned services subject to Ministry's specified regulations and conditions specified from time to time. The foreign investment (FI) limit in companies engaged in the aforestated activities shall include, in addition to FDI, Foreign Portfolio Investors (FPIs), Qualified Foreign Investors(QFIs), Non-Resident Indians (NRIs), Foreign Currency Convertible Bonds (FCCBs), American Depository Receipts (ADRs), Global Depository Receipts (GDRs) and convertible preference shares held by foreign entities. Foreign investment in broadcasting carriage services subject to specified security conditions/terms.
By CA. Kapil Mittal
Last update on March 5,2024
Foreign Direct Investment (FDI) Policy in Civil Aviation
India's civil aviation sector has undergone significant transformation in recent years, fueled by liberalization measures and strategic policy interventions. India's air travel industry has changed a lot lately because of new rules and government decisions. One big part of this change is how foreign companies can invest in Indian airlines. This policy is really important for how the industry grows.
By CA. Kapil Mittal
Last update on February 21,2024