Penalty under FEMA Penalty that can be imposed under FEMA The penalty can be upto thrice the sum involved in such contravention where the amount is quantifiable. If the amount is not quantifiable, penalty upto Rs. two lakhs can be imposed. If contravention is of continuing nature, further penalty upto Rs. 5,000 per day during… Read More »
Act done in good faith A thing is deemed to have been done in good faith where it is in fact done honestly, whether it is done negligently or not [section 3(22) of the General Clauses Act]. A person cannot be said acting in good faith where he has a suspicion that there is something… Read More »
Natural justice For controlling abuse of power, the Courts in their various landmark judgments have held that no decision which prejudicially affects a person can be taken without giving him a prior opportunity of hearing. Courts have now obliterated distinction between a quasi-judicial function and an administrative function. If the urgency and the nature of… Read More »
Questions and Answers For Members 1. What is UAN ? UAN stands for Universal Account Number. The UAN will act as an umbrella for the multiple Member Ids allotted to an individual by different establishments. The idea is to link multiple Member Identification Numbers (Member Id) allotted to a single member under single Universal Account Number.… Read More »
Separate PIS sub-account by NRI NRI may open a separate sub-account of NRE/NRO account with authorized dealers for routing receipt and payment of transactions relating to purchase and sale of shares and convertible debentures under NRE (PIS) account for investment made on repatriation basis and NRO(PIS) account for investment made on non-repatriation basis. Only permitted… Read More »
Non-Resident Ordinary Rupee (NRO) Account Statutory provisions are contained in schedule 3 of Foreign Exchange Management (Deposit) Regulations, 2000. RBI has issued Master Circular No. 2/2014-15 dated 1-7-2014 on ‘Non-Resident Ordinary Rupee (NRO) Account’ [earlier Master Circular No. 2/2013-14 dated 1-7-2013], consolidating all instructions relating to NRO account. RBI has issued master circular DBOD No.… Read More »
Non-Resident (External) Rupee Account Scheme (NRE) The amount (principal as well as interest) is freely repatriable. Transfer from/to FCNR(B) account is freely permitted. Statutory provisions are contained in schedule 1 of Foreign Exchange Management (Deposit) Regulations, 2000. The provisions are summarised below— Form of account – The accounts may be maintained in any form, e.g.… Read More »
Buy Latest Book on Foreign Exchange Management -FEMA Highlight ad code TRANSFER OF SHARES AND CONVERTIBLE DEBENTURES OF AN INDIAN COMPANY 1.1 Background General policy regarding transfer of shares to or from non resident are summarised in para 3.4.4 of Consolidated FDI Policy Circular No. 1 of 2014 dated 17-4-2014 issued by DIPP of MC&I Foreign… Read More »
ACQUISITION AND TRANSFER OF PROPERTY IN INDIA ACQUISITION AND TRANSFER OF IMMOVABLE PROPERTY IN INDIA 1.1 Background Restrictions in respect of acquisition and transfer of immovable property in India by non-resident are covered in Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2000. Instructions are consolidated in RBI Master Circular No.… Read More »
BRANCH OFFICE IN INDIA ESTABLISHMENT OF BRANCH OR OFFICE IN INDIA 1 Background Provisions to prohibit, restrict and regulate establishment in India of a branch or office or other place of business by a person resident outside India are contained in Foreign Exchange Management (Establishment in India of Branch or Office or other Place of… Read More »