FEMA
Foreign Exchange Management Act decoded — FDI, LRS, NRI banking, ODI, ECB and export-import regulations simplified.
FEMA Overview & Structure
Understanding the Foreign Exchange Management Act, 1999 — its scope, applicability, current account vs capital account transactions, and RBI's role.
Foreign Direct Investment (FDI)
FDI policy routes (automatic vs approval), sector-specific caps, pricing guidelines, reporting requirements (FC-GPR, FC-TRS), and downstream investment rules.
Liberalised Remittance Scheme (LRS)
LRS limit of USD 250,000 per year, permitted purposes, TCS under Section 206C(1G), reporting requirements, and common compliance errors.
NRI Banking & Accounts
NRE, NRO, and FCNR accounts — opening rules, permissible credits/debits, repatriation limits, taxation of interest, and joint account rules.
Overseas Direct Investment (ODI)
ODI regulations under FEMA, automatic and approval routes, financial commitment limits, annual performance report (APR), and disinvestment reporting.
External Commercial Borrowings (ECB)
ECB framework — eligible borrowers, recognised lenders, all-in-cost ceiling, end-use restrictions, and reporting through ECB-2 return.
Export & Import Regulations
Export of goods and services — realisation period, softex forms, write-off procedures. Import regulations — advance remittance, import evidence, and EDPMS/IDPMS.
FEMA Penalties & Compounding
Penalty provisions under Section 13, compounding of contraventions, ED investigation process, and voluntary disclosure under the compounding framework.