FEMA & RBI COMPLIANCES

FEMA (Foreign Exchange Management Act),1999.

An Act to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India.

The following are the authorities to regulate FEMA:

• Reserve Bank of India (RBI).
• Income Tax Act
• Companies Act 2013
• SEBI-Securities and Exchange Board of India

It deals in:

• Foreign Exchange transactions
• Holding of Foreign Exchange
• Current account transactions
• Capital account transactions
• Export of goods & Services
• Realisation and repatriation of foreign exchange

Reserve Bank of India (RBI) acts as a primary authority to monitor and regulate FEMA transactions.

The Reserve Bank may, on an application made to it in this behalf, authorise any person to be known as authorised person to deal in foreign exchange or in foreign securities, as an authorised dealer, money changer or off-shore banking unit or in any other manner as it deems fit.

The major compliances are:

• Annual Return on Foreign Assets & Liabilities
• Annual Performance Report
• External Commercial Borrowings
• Advance Reporting Form
• Form FC-GPR
• Form FC-TRS
• Form ODI
• Single Master Form