Comprehensive guide to Foreign Exchange Management Act, RBI Master Directions, FDI Policy, FTP 2023-28 and DGFT regulations — authored by former ED officers with FEMA enforcement experience.
Trade payments, remittances, invisibles — generally free. Liberalised Remittance Scheme (LRS) — USD 250,000/year per resident.
FDI via Automatic / Government route. FPI through SEBI-registered entities. ODI for Indian companies investing abroad.
RBI Compounding Authority for FEMA violations. ED enforcement for forex violations with criminal element under PMLA.
DGFT-administered. Export promotion schemes: EPCG, Advance Authorisation, RoDTEP, Star Export House status.
FEMA replaced FERA 1973 — shifting from criminal to civil enforcement for foreign exchange violations.
No person shall deal in foreign exchange without authorisation. Covers acquisition, holding, payment and transactions through unauthorised persons.
RBI authorises banks and other entities to deal in foreign exchange. Categories: Authorised Dealer (AD) Cat I, II, III and FFMC.
Civil penalty up to 3x the sum or ₹2 lakh (whichever is higher). Continued default — additional ₹5,000 per day. Adjudicated by RBI/ED.
ED enforcement for FEMA violations. Compounding of offences by RBI — payment of penalty closes proceedings.
USD 250,000 per resident individual per financial year for current and capital account transactions without prior RBI approval.
Consolidated circulars replacing hundreds of individual guidelines — Master Directions on FDI, ECB, Remittances, Exports and Imports.
DGFT-administered schemes to boost India's exports and ease of doing business for exporters.
Zero customs duty on import of capital goods against export obligation of 6x duty saved in 6 years.
Duty-free import of inputs physically incorporated in export product. Value Addition norms under HBP.
Refund of taxes/duties not covered under other schemes — replaces MEIS from 1 January 2021.
Recognised export clusters get priority sector support, MAI and MDA funding for market development.
One Star to Five Star status based on export performance. Benefits: self-certification, priority customs clearance.
Annexures and Aayaat Niryaat Forms — official applications for EPCG, AA, SEIS and other FTP scheme benefits.
Former ED officers with direct FEMA enforcement experience — now advising businesses on FEMA compliance and FTP.