FEMA compounding orders : a comprehensive analysis - Vol. 2
Bhuta, Harshal
FEMA compounding orders : a comprehensive analysis - Vol. 2 - 2nd ed. - New Delhi: Bloomsbury Publishing India Pvt. Ltd, 2020. - xxxvi, 320 p. - Vol. 2 .
Preface to Volume I
Preface to Volume II
List of abbreviations
Section I
Learnings Derived from Analysis of Compounding Orders
Learnings Derived from Analysis of Compounding Orders
1.1 General insights
1.2 Foreign Exchange Management Act, 1999
1.3 FEMA (Current Account Transactions) Rules, 2000
1.4 FEMA 1/2000-RB dated 3.5.2000
1.5 FEMA 3/2000-RB dated 3.5.2000
1.6 FEMA 4/2000-RB dated 3.5.2000
1.7 FEMA 5/2000-RB dated 3.5.2000
1.8 FEMA 9/2000-RB dated 3.5.2000
1.9 FEMA 10/2000-RB dated 3.5.2000
1.10 FEMA 11/2000-RB dated 3.5.2000
1.11 FEMA 13/2000-RB dated 3.5.2000
1.12 FEMA 14/2000-RB dated 3.5.2000
1.13 FEMA 19/2000-RB dated 3.5.2000
1.14 FEMA 20/2000-RB dated 3.5.2000
1.15 FEMA 20(R)/2017-RB dated 7.11.2017
1.16 FEMA 21/2000-RB dated 3.5.2000
1.17 FEMA 22/2000-RB dated 3.5.2000
1.18 FEMA 22(R)/2016-RB Dated 31.3.2016
1.19 FEMA 23/2000-RB dated 3.5.2000
1.20 FEMA 23(R)/2015-RB dated 12.1.2015
1.21 FEMA 24/2000-RB dated 3.5.2000
1.22 FEMA 120/2004-RB dated 7.7.2004
Section II
Plain Description of Regulations
2.1 Foreign Exchange Management Act, 1999
2.2 FEMA (Current Account Transactions) Rules, 2000
2.3 FEMA Notification No. 1/2000-RB dated 3.5.2000
2.4 FEMA Notification No. 3/2000-RB dated 3.5.2000
2.5 FEMA Notification No. 4/2000-RB dated 3.5.2000
2.6 FEMA Notification No. 5/2000-RB dated 3.5.2000
2.7 FEMA Notification No. 9/2000-RB dated 3.5.2000
2.8 FEMA Notification No. 10/2000-RB dated 3.5.2000
2.9 FEMA Notification No. 11/2000-RB dated 3.5.2000
2.10 FEMA Notification No. 13/2000-RB dated 3.5.2000
2.11 FEMA Notification No. 19/2000-RB dated 3.5.2000
2.12 FEMA Notification No. 20/2000-RB dated 3.5.2000. 2.13 FEMA Notification No. 20(R)/2017-RB dated 7.11.2017
2.14 FEMA Notification No. 21/2000-RB dated 3.5.2000
2.15 FEMA Notification No. 22(R)/2016-RB dated 31.3.2016
2.16 FEMA Notification No. 23/2000-RB dated 3.5.2000
2.17 FEMA Notification No. 23(R)/2015-RB dated 12.01.2015
2.18 FEMA Notification No. 24/2000-RB dated 3.5.2000
2.19 FEMA Notification No. 120/2004-RB dated 7.7.2004
Section III
Analysis of FEMA Compounding Orders
3.1 Section 5
3.1.1 Gift under the Liberalized Remittance Scheme (LRS) from a person resident in India to another person resident in India
3.2 Section 10(6)
3.2.1 Summary Reporting of order on section 10(6) of FEMA Act, 1999
3.3 Section 42(1)
3.3.1 Deemed to be guilty for contravention made by the company where the applicant was a director
3.3.2 Summary Reporting of other orders on section 42(1) of FEMA Act, 1999
FEMA (Current Account Transactions) Rules, 2000
4.1 Rule 4 read with item 6(a) of Schedule II to Foreign Exchange Management (Current Account Transaction) Rules, 2000
4.1.1 Summary Reporting of order on rule 4 read with item 6(a) of Schedule II to Foreign Exchange Management (Current Account Transaction) Rules, 2000
FEMA Notification No. 1/2000-RB dated 3.5.2000
5.1 Regulation 4
5.1.1 Remittance in excess of the Liberalised Remittance Scheme (LRS) limit without seeking prior approval from Reserve Bank of India
FEMA Notification No. 3/2000-RB dated 3.5.2000
6.1 Regulation 3
6.1.1 Availing of foreign currency loan overseas for purchasing property abroad
6.2 Regulation 6(1)
6.2.1 Paragraph 1(i) of Schedule I
6.2.1.1 Deemed borrowing in foreign exchange from its parent company abroad without meeting the stipulated condition
6.2.1.2 Availing External Commercial Borrowing (ECB) when the applicant was not an eligible borrower. 6.2.2 Paragraph 1(iii) of Schedule I
6.2.2.1 Lender was not recognized under the ECB framework
6.2.2.2 Summary Reporting of other orders on Paragraph 1(iii) of Schedule I
6.2.3 Paragraph 1(iv) of Schedule I
6.2.3.1 Availing External Commercial borrowing for an end use that was not permitted
6.2.3.2 Summary Reporting of other orders on Paragraph 1(iv) of Schedule I
6.2.4 Paragraph 1(v) of Schedule I
6.2.4.1 Summary Reporting of orders on Paragraph 1(v) of Schedule I
6.2.5 Paragraph 1(xi) of Schedule I
6.2.5.1 Summary Reporting of orders on Paragraph 1(xi) of Schedule I
6.2.6 Paragraph 1(xii) of Schedule I
6.2.6.1 Summary Reporting of orders on Paragraph 1(xii) of Schedule I
6.3 Comparison between FEMA 3/2000-RB dated 3.5.2000 and FEMA 3(R)/2018-RB dated 17.12.2018
FEMA Notification No. 4/2000-RB dated 3.5.2000
7.1 Regulation 3
7.1.1 Granting Loan to NRI director without prior approval of RBI
7.2 Regulation 5(1)
7.2.1 Raising money from its NRI Director without using the requisite public offer route of issuance of Non-convertible debentures (NCDs)
7.2.2 Summary Reporting of other orders on Regulation 5(1)
7.3 Regulation 6
7.3.1 Summary Reporting of orders on Regulation 6
7.4 Comparison between FEMA 4/2000-RB dated 3.5.2000 and FEMA 3(R)/2018-RB dated 17.12.2018
FEMA Notification No. 5/2000-RB dated 3.5.2000
8.1 Paragraph 4(c) of Schedule 1
8.1.1 Transfer of funds from NRE account to ordinary savings account
8.2 Comparison between FEMA 5/2000-RB dated 3.5.2000 and FEMA 5(R)/2016-RB dated 1.4.2016
FEMA Notification No. 9/2000-RB dated 3.5.2000
9.1 Regulation 6(2)
9.1.1 Possession and retention of foreign exchange beyond the stipulated limit and delay in surrender of foreign exchange. 14.4 Regulation 5(3)(ii) r.w. Paragraph 3 of Schedule 4
14.4.1 Purchase of equity shares of an Indian Company by the applicant pursuant to becoming a Non Resident Indian (NRI) through a resident saving bank account
14.5 Regulation 5(9)
14.5.1 Summary Reporting of orders on Regulation 5(9)
14.6 Regulation 6B
14.6.1 Summary Reporting of orders on Regulation 6B
14.7 Regulation 8(2) (from 11.06.2015 to 23.01.2017) etamp
Regulation 8(3) (from 24.10.2012 to 10.06.2015)
14.7.1 Summary Reporting of orders on Regulation 8(2) (from 11.06.2015 to 23.01.2017) etamp
Regulation 8(3) (from 24.10.2012 to 10.06.2015)
14.8 Regulation 9(2)(ii)
14.8.1 Transfer of shares from NRI to NR without RBI approval
14.8.2 Summary Reporting of other orders on Regulation 9(2)(ii)
14.9 Regulation 10A(a)
14.9.1 Summary Reporting of orders on Regulation 10A(a)
14.10 Regulation 10A(a)(i)
14.10.1 Transfer of shares from Resident to Non-resident by way of gift without prior approval of RBI
14.10.2 Summary Reporting of other orders on Regulation 10A(a)(i)
14.11 Regulation 10A(a)(ii)(b)
14.11.1 Summary Reporting of other orders on Regulation 10A(a)(ii)(b)
14.12 Regulation 10A(a)(ii)(e)
14.12.1 Transfer of shares by way of gift exceeding USD 25,000 in value
14.13 Regulation 10A(b)(i)
14.13.1 Delay in refund of sale consideration pursuant to cancellation of security transfer transaction
14.13.2 Summary Reporting of other orders on Regulation 10A(b)(i)
14.14 Regulation 10A(b)(ii)
14.14.1 Summary Reporting of orders on Regulation 10A(b)(ii)
14.15 Regulation 10A(b)(iii)
14.15.1 Summary Reporting of orders on Regulation 10A(b)(iii)
14.16 Regulation 10B(2)
14.16.1 Summary Reporting of orders on Regulation 10B(2)
14.17 Regulation 14(6)(ii)(a)
14.17.1 Summary Reporting of orders on Regulation 14(6)(ii)(a). 9.2 Comparison between FEMA 9/2000-RB dated 3.5.2000 and FEMA 9(R)/2015-RB dated 29.12.2015
FEMA Notification No. 10/ 2000-RB dated 3.5.2000
10.1 Regulation 3
10.1.1 Use of Foreign Currency Account (FCA) for receiving export proceeds
10.2 Regulation 4 read with Paragraph 2 of Schedule 1
10.2.1 Summary Reporting of orders on Regulation 4 read with Paragraph 2 of Schedule 1
10.3 Comparison between FEMA 10/2000-RB dated 3.5.2000 and FEMA 10(R)/2015-RB dated 21.01.2016
FEMA Notification No. 11/ 2000-RB dated 3.5.2000
11.1 Regulation 3
11.1.1 Summary Reporting of orders on Regulation 3
11.2 Comparison between FEMA 11/2000-RB dated 3.5.2000 and FEMA 11(R)/2015-RB dated 29.12.2015
FEMA Notification No. 13/ 2000-RB dated 3.5.2000
12.1 Regulation 4(2)
12.1.1 Remittance of assets beyond the stipulated limit
12.2 Comparison between FEMA 13/2000-RB dated 3.5.2000 and FEMA 13(R)/2016-RB dated 1.4.2016
FEMA Notification No. 19/ 2000-RBI dated 3.5.2000
13.1 Regulation 6(5)
13.1.1 Summary Reporting of orders on Regulation 6(5)
13.2 Regulation 15(iii)
13.2.1 Summary Reporting of orders on Regulation 15(iii)
13.3 Regulation 16
13.3.1 Disinvestment without approval from the Reserve Bank of India
13.4 Comparison between FEMA 19/2000-RB dated 3.5.2000 and FEMA 120/2004-RB dated 7.7.2004
FEMA Notification No. 20/2000-RBI dated ٣.5.2000
14.1 Regulation 3
14.1.1 Violation of specified condition in RBI approval letter issued for acquiring 100% shareholding in an Indian company from its non-resident and resident shareholders
14.1.2 Summary Reporting of other orders on Regulation 3
14.2 Regulation 4
14.2.1 Transfer of shares to non-resident
14.2.2 Summary Reporting of other orders on Regulation 4
14.3 Regulation 5(1)
14.3.1 Summary Reporting of orders on Regulation 5(1)
9789389714616
Compounding orders
Derived from Analysis of Compounding Orders
Foreign Exchange Management Act
Gift under the Liberalized Remittance Scheme
343.032 BHU
FEMA compounding orders : a comprehensive analysis - Vol. 2 - 2nd ed. - New Delhi: Bloomsbury Publishing India Pvt. Ltd, 2020. - xxxvi, 320 p. - Vol. 2 .
Preface to Volume I
Preface to Volume II
List of abbreviations
Section I
Learnings Derived from Analysis of Compounding Orders
Learnings Derived from Analysis of Compounding Orders
1.1 General insights
1.2 Foreign Exchange Management Act, 1999
1.3 FEMA (Current Account Transactions) Rules, 2000
1.4 FEMA 1/2000-RB dated 3.5.2000
1.5 FEMA 3/2000-RB dated 3.5.2000
1.6 FEMA 4/2000-RB dated 3.5.2000
1.7 FEMA 5/2000-RB dated 3.5.2000
1.8 FEMA 9/2000-RB dated 3.5.2000
1.9 FEMA 10/2000-RB dated 3.5.2000
1.10 FEMA 11/2000-RB dated 3.5.2000
1.11 FEMA 13/2000-RB dated 3.5.2000
1.12 FEMA 14/2000-RB dated 3.5.2000
1.13 FEMA 19/2000-RB dated 3.5.2000
1.14 FEMA 20/2000-RB dated 3.5.2000
1.15 FEMA 20(R)/2017-RB dated 7.11.2017
1.16 FEMA 21/2000-RB dated 3.5.2000
1.17 FEMA 22/2000-RB dated 3.5.2000
1.18 FEMA 22(R)/2016-RB Dated 31.3.2016
1.19 FEMA 23/2000-RB dated 3.5.2000
1.20 FEMA 23(R)/2015-RB dated 12.1.2015
1.21 FEMA 24/2000-RB dated 3.5.2000
1.22 FEMA 120/2004-RB dated 7.7.2004
Section II
Plain Description of Regulations
2.1 Foreign Exchange Management Act, 1999
2.2 FEMA (Current Account Transactions) Rules, 2000
2.3 FEMA Notification No. 1/2000-RB dated 3.5.2000
2.4 FEMA Notification No. 3/2000-RB dated 3.5.2000
2.5 FEMA Notification No. 4/2000-RB dated 3.5.2000
2.6 FEMA Notification No. 5/2000-RB dated 3.5.2000
2.7 FEMA Notification No. 9/2000-RB dated 3.5.2000
2.8 FEMA Notification No. 10/2000-RB dated 3.5.2000
2.9 FEMA Notification No. 11/2000-RB dated 3.5.2000
2.10 FEMA Notification No. 13/2000-RB dated 3.5.2000
2.11 FEMA Notification No. 19/2000-RB dated 3.5.2000
2.12 FEMA Notification No. 20/2000-RB dated 3.5.2000. 2.13 FEMA Notification No. 20(R)/2017-RB dated 7.11.2017
2.14 FEMA Notification No. 21/2000-RB dated 3.5.2000
2.15 FEMA Notification No. 22(R)/2016-RB dated 31.3.2016
2.16 FEMA Notification No. 23/2000-RB dated 3.5.2000
2.17 FEMA Notification No. 23(R)/2015-RB dated 12.01.2015
2.18 FEMA Notification No. 24/2000-RB dated 3.5.2000
2.19 FEMA Notification No. 120/2004-RB dated 7.7.2004
Section III
Analysis of FEMA Compounding Orders
3.1 Section 5
3.1.1 Gift under the Liberalized Remittance Scheme (LRS) from a person resident in India to another person resident in India
3.2 Section 10(6)
3.2.1 Summary Reporting of order on section 10(6) of FEMA Act, 1999
3.3 Section 42(1)
3.3.1 Deemed to be guilty for contravention made by the company where the applicant was a director
3.3.2 Summary Reporting of other orders on section 42(1) of FEMA Act, 1999
FEMA (Current Account Transactions) Rules, 2000
4.1 Rule 4 read with item 6(a) of Schedule II to Foreign Exchange Management (Current Account Transaction) Rules, 2000
4.1.1 Summary Reporting of order on rule 4 read with item 6(a) of Schedule II to Foreign Exchange Management (Current Account Transaction) Rules, 2000
FEMA Notification No. 1/2000-RB dated 3.5.2000
5.1 Regulation 4
5.1.1 Remittance in excess of the Liberalised Remittance Scheme (LRS) limit without seeking prior approval from Reserve Bank of India
FEMA Notification No. 3/2000-RB dated 3.5.2000
6.1 Regulation 3
6.1.1 Availing of foreign currency loan overseas for purchasing property abroad
6.2 Regulation 6(1)
6.2.1 Paragraph 1(i) of Schedule I
6.2.1.1 Deemed borrowing in foreign exchange from its parent company abroad without meeting the stipulated condition
6.2.1.2 Availing External Commercial Borrowing (ECB) when the applicant was not an eligible borrower. 6.2.2 Paragraph 1(iii) of Schedule I
6.2.2.1 Lender was not recognized under the ECB framework
6.2.2.2 Summary Reporting of other orders on Paragraph 1(iii) of Schedule I
6.2.3 Paragraph 1(iv) of Schedule I
6.2.3.1 Availing External Commercial borrowing for an end use that was not permitted
6.2.3.2 Summary Reporting of other orders on Paragraph 1(iv) of Schedule I
6.2.4 Paragraph 1(v) of Schedule I
6.2.4.1 Summary Reporting of orders on Paragraph 1(v) of Schedule I
6.2.5 Paragraph 1(xi) of Schedule I
6.2.5.1 Summary Reporting of orders on Paragraph 1(xi) of Schedule I
6.2.6 Paragraph 1(xii) of Schedule I
6.2.6.1 Summary Reporting of orders on Paragraph 1(xii) of Schedule I
6.3 Comparison between FEMA 3/2000-RB dated 3.5.2000 and FEMA 3(R)/2018-RB dated 17.12.2018
FEMA Notification No. 4/2000-RB dated 3.5.2000
7.1 Regulation 3
7.1.1 Granting Loan to NRI director without prior approval of RBI
7.2 Regulation 5(1)
7.2.1 Raising money from its NRI Director without using the requisite public offer route of issuance of Non-convertible debentures (NCDs)
7.2.2 Summary Reporting of other orders on Regulation 5(1)
7.3 Regulation 6
7.3.1 Summary Reporting of orders on Regulation 6
7.4 Comparison between FEMA 4/2000-RB dated 3.5.2000 and FEMA 3(R)/2018-RB dated 17.12.2018
FEMA Notification No. 5/2000-RB dated 3.5.2000
8.1 Paragraph 4(c) of Schedule 1
8.1.1 Transfer of funds from NRE account to ordinary savings account
8.2 Comparison between FEMA 5/2000-RB dated 3.5.2000 and FEMA 5(R)/2016-RB dated 1.4.2016
FEMA Notification No. 9/2000-RB dated 3.5.2000
9.1 Regulation 6(2)
9.1.1 Possession and retention of foreign exchange beyond the stipulated limit and delay in surrender of foreign exchange. 14.4 Regulation 5(3)(ii) r.w. Paragraph 3 of Schedule 4
14.4.1 Purchase of equity shares of an Indian Company by the applicant pursuant to becoming a Non Resident Indian (NRI) through a resident saving bank account
14.5 Regulation 5(9)
14.5.1 Summary Reporting of orders on Regulation 5(9)
14.6 Regulation 6B
14.6.1 Summary Reporting of orders on Regulation 6B
14.7 Regulation 8(2) (from 11.06.2015 to 23.01.2017) etamp
Regulation 8(3) (from 24.10.2012 to 10.06.2015)
14.7.1 Summary Reporting of orders on Regulation 8(2) (from 11.06.2015 to 23.01.2017) etamp
Regulation 8(3) (from 24.10.2012 to 10.06.2015)
14.8 Regulation 9(2)(ii)
14.8.1 Transfer of shares from NRI to NR without RBI approval
14.8.2 Summary Reporting of other orders on Regulation 9(2)(ii)
14.9 Regulation 10A(a)
14.9.1 Summary Reporting of orders on Regulation 10A(a)
14.10 Regulation 10A(a)(i)
14.10.1 Transfer of shares from Resident to Non-resident by way of gift without prior approval of RBI
14.10.2 Summary Reporting of other orders on Regulation 10A(a)(i)
14.11 Regulation 10A(a)(ii)(b)
14.11.1 Summary Reporting of other orders on Regulation 10A(a)(ii)(b)
14.12 Regulation 10A(a)(ii)(e)
14.12.1 Transfer of shares by way of gift exceeding USD 25,000 in value
14.13 Regulation 10A(b)(i)
14.13.1 Delay in refund of sale consideration pursuant to cancellation of security transfer transaction
14.13.2 Summary Reporting of other orders on Regulation 10A(b)(i)
14.14 Regulation 10A(b)(ii)
14.14.1 Summary Reporting of orders on Regulation 10A(b)(ii)
14.15 Regulation 10A(b)(iii)
14.15.1 Summary Reporting of orders on Regulation 10A(b)(iii)
14.16 Regulation 10B(2)
14.16.1 Summary Reporting of orders on Regulation 10B(2)
14.17 Regulation 14(6)(ii)(a)
14.17.1 Summary Reporting of orders on Regulation 14(6)(ii)(a). 9.2 Comparison between FEMA 9/2000-RB dated 3.5.2000 and FEMA 9(R)/2015-RB dated 29.12.2015
FEMA Notification No. 10/ 2000-RB dated 3.5.2000
10.1 Regulation 3
10.1.1 Use of Foreign Currency Account (FCA) for receiving export proceeds
10.2 Regulation 4 read with Paragraph 2 of Schedule 1
10.2.1 Summary Reporting of orders on Regulation 4 read with Paragraph 2 of Schedule 1
10.3 Comparison between FEMA 10/2000-RB dated 3.5.2000 and FEMA 10(R)/2015-RB dated 21.01.2016
FEMA Notification No. 11/ 2000-RB dated 3.5.2000
11.1 Regulation 3
11.1.1 Summary Reporting of orders on Regulation 3
11.2 Comparison between FEMA 11/2000-RB dated 3.5.2000 and FEMA 11(R)/2015-RB dated 29.12.2015
FEMA Notification No. 13/ 2000-RB dated 3.5.2000
12.1 Regulation 4(2)
12.1.1 Remittance of assets beyond the stipulated limit
12.2 Comparison between FEMA 13/2000-RB dated 3.5.2000 and FEMA 13(R)/2016-RB dated 1.4.2016
FEMA Notification No. 19/ 2000-RBI dated 3.5.2000
13.1 Regulation 6(5)
13.1.1 Summary Reporting of orders on Regulation 6(5)
13.2 Regulation 15(iii)
13.2.1 Summary Reporting of orders on Regulation 15(iii)
13.3 Regulation 16
13.3.1 Disinvestment without approval from the Reserve Bank of India
13.4 Comparison between FEMA 19/2000-RB dated 3.5.2000 and FEMA 120/2004-RB dated 7.7.2004
FEMA Notification No. 20/2000-RBI dated ٣.5.2000
14.1 Regulation 3
14.1.1 Violation of specified condition in RBI approval letter issued for acquiring 100% shareholding in an Indian company from its non-resident and resident shareholders
14.1.2 Summary Reporting of other orders on Regulation 3
14.2 Regulation 4
14.2.1 Transfer of shares to non-resident
14.2.2 Summary Reporting of other orders on Regulation 4
14.3 Regulation 5(1)
14.3.1 Summary Reporting of orders on Regulation 5(1)
9789389714616
Compounding orders
Derived from Analysis of Compounding Orders
Foreign Exchange Management Act
Gift under the Liberalized Remittance Scheme
343.032 BHU
