Blog Archives

External Commercial Borrowings Framework

Introduction External Commercial Borrowings (ECB) are the borrowings taken by an eligible entity in India for commercial purpose from any recognized entity outside India. As funding by the companies through debt has been traditionally been a preferred mode of funding due to inherent advantages such as security creation, minimum guaranteed returns, and tax optimization for […]

All About External Commercial Borrowings

What is “External Commercial Borrowings (ECB) “External Commercial Borrowings (ECB)” means borrowing by an eligible resident entity from outside India in accordance with framework decided by the Reserve Bank of India in consultation with the Government of India: Eligible entities may raise External Commercial Borrowings (ECB) from outside India in accordance with the provisions. ♦ […]

All about Overseas Direct Investment (ODI) under FEMA

In this era of globalization, Overseas Direct Investment (ODI) has become a buzzword. From the past few years, it has been observed that the trend of making investment in businesses overseas is increasing year by year. Many of the resident individuals and Indian Companies are investing / acquiring stake in the foreign entities. This article […]

All about Overseas Direct Investment (ODI) under FEMA

In this era of globalization, Overseas Direct Investment (ODI) has become a buzzword. From the past few years, it has been observed that the trend of making investment in businesses overseas is increasing year by year. Many of the resident individuals and Indian Companies are investing / acquiring stake in the foreign entities. This article […]

FDI: Key Provisions – FEMA Regulations

10 – Key provisions related to Foreign Direct investment into India FDI (Foreign Direct Investment) is a major source of non-debt financial resource for the economic development of any nation and is thus a channel of economic growth. FDI attracted its significance with the globalization framework adopted by many economies. From India perspectives, we adopted […]

Oversea Direct Investment

♦ Oversea Direct Investment: Direct investment outside India means investment by way of contribution to the capital of a foreign entity. ♦ Eligible entity to make overseas investment (Other than Individual): a. Resident corporate entities and b. Registered partnership firms. ♦ ODI can be by Indian party or Individual An investment outside India can be […]

Special Non Resident Rupee Account (SNRR) FAQs

Special Non Resident Rupee Account (SNRR) FAQs SERIES I The following accounts are allowed to be opened by non residents as per RBI regulations: 1. Non- Resident External Rupee (NRE) Account – Savings / Current / Recurring / Fixed Deposit account opened by Non-resident Indian (NRI) or Person of Indian Origin (PIO) to deposit his […]

Review of FDI Policy on downstream investments made by NRIs

Investments by NRI(s) on a non-repatriation basis as stipulated under Schedule IV of Foreign Exchange Management (Non-Debt Instruments) Rules 2019 are deemed to be domestic investments at par with the investments made by residents. Accordingly, an investment made by an Indian entity which is owned and controlled by NRI(s) on a non-repatriation basis shall not be considered for calculation of indirect foreign investment.

Liberalised Remittance Scheme (LRS)

Liberalised Remittance Scheme (LRS) is a measure to facilitate Resident Individuals (including minors) to remit funds outside India up to USD 250,000 or its equivalent in any freely convertible foreign currency per financial year (April-March) for any permissible capital or current account transaction or a combination of both. The scheme was introduced by Reserve Bank […]

Common Mistakes while doing Overseas Direct Investment & judicial proceedings

With the aim of diversifying the business abroad, Overseas direct investments (ODI) are undertaken as significant means for developing economies and emerging markets where companies need funding and expertise to expand their international sales. The importance of ODI can be accurately measured by the innumerable benefits like better economic co-operation, economic integration, growth of capital etc.

Reasons for Cancellation of NBFC Certificate of registration

The Reserve Bank of India (RBI) can exercised the power under The Reserve Bank of India Act, 1934 to issue or cancel the certificate of Non-Banking Finance Company (NBFC) in India. The Reserve Bank of India plays the key role of the Regulatory body and an authority to supervise and regulate NBFCs in India. RBI grants […]

Receipt of Gifts and Inheritances by NRI

An NRI can have the interest in the following assets in India, which he receives by Gift or by inheritance- i. Money or Liquid funds ii. Immovable properties iii. Jewellery, painting, art piece or other valuable goods iv. Shares in companies registered in India v. Interest in Limited Liability Partnerships (LLPs) Any such receipt through […]

Received Foreign Funding? Comply with FC-GPR filing in 30 days

♦ Introduction: We are witnessing massive amount of foreign funds coming into India especially through investments into Start-ups. The government is also encouraging foreign investment through different incentives like liberalising FDI limit in various sectors. However, due to lack of awareness, often start-ups fail to comply with FEMA and RBI regulations with respect to Foreign […]