Compounding of contraventions under FEMA
Voluntary admission of contravention; compounded by RBI/Directorate of Enforcement; no criminal prosecution post-compounding; quantum based on Master Direction matrix.
Sign in to read the full answer
Create a free account — showcase questions, bookmarks, and progress tracking, at no cost.
Related questions
Ranked by topic overlap with this question.
Difference between Capital and Current Account transactions under FEMA
Capital account: alters assets/liabilities of resident outside India (FDI, ODI, ECB, NRI deposits). Current account: rest (trade, services, dividends, salaries).
FDI reporting — FC-GPR and FC-TRS
FC-GPR: report receipt of FDI and allotment within 30 days. FC-TRS: report transfer of shares between resident and non-resident within 60 days.
Automatic Route vs Approval Route for FDI
Automatic: no prior approval; only post-investment reporting. Approval route: government clearance via FIFP for sensitive sectors and from land-border countries.
External Commercial Borrowings (ECB) framework
Foreign-currency or INR-denominated borrowings by eligible Indian entities, under tenor / pricing / end-use restrictions per RBI Master Direction.
Overseas Direct Investment (ODI) under FEMA
Indian entities can invest abroad up to 400% of net worth (automatic) under FEM (OI) Rules 2022. New ODI/OPI bifurcation, financial services restrictions and Form FC.