26 May 2018
Registered Users : 155175
Current Active Users : 95986


View More »
Home Knowledge Links

Corporate & Other Laws FEMA

  • Should FEMA be amended?
    Dec 03, 2012
    On the heels of the diesel subsidy reduction, on September 20, 2012, the central government sprang into action with the revival of their reform agenda. A slew of key reforms were unleashed in retail, aviation and power sectors, with the opening up of the multibrand retail sector as the starred item. On this issue, there was expectedly great uproar, of how the East India Company came as an investor and stayed on to rule. While India’s credit ratings went up, foreign investors evinced interest, but with caution. In the meanwhile the government proceeded to issue the Press Notes by way of delegated legislation under Article 73 of the Indian Constitution which empowers the Union to make laws on all matters on which the Parliament is empowered to. Political opponents and activists voiced their protests, as did a political ally in withdrawing its support to the central government.
  • Government tables amendments to Fema, no vote needed
    Dec 01, 2012
    The government has tabled amendments to the Foreign Exchange Management Act in the Lok Sabha, required to allow foreign direct investment in multi-brand retail trade. Five amendments to regulations issued by the Reserve Bank of India between May and October were tabled by minister of state for finance Namo Narain Meena during zero hour. The amendments seek to provide for 51% foreign investment in multi-brand retail, 100% FDI in single-brand retail and investment by foreign airlines in domestic carriers. RBI had notified the amendments after a directive from Supreme Court in October. The apexBSE 0.00 % court had admitted a PIL that accused the government of not following proper procedure in introducing the new FDI policy.
  • Easier ECB pledging norms to help infrastructure cos
    Mar 25, 2011
    In a move, which could provide additional liquidity to Indian companies and ease borrowing from outside India, the government is set to allow promoters of Indian companies to pledge shares against external commercial borrowings (ECBs). The move will also ensure additional security to the ECB lenders and enable infrastructure companies, who are the highest recipients of overseas loans, raise ECBs easily. The move is part of the new Foreign Exchange Management Act (Fema) guidelines, which is being amended after 10 years. However, RBI has directed that no person would be allowed to pledge shares if he doesn’t have a no-objection certification (NOC) from a bank, which is an authorised dealer.
  • Admit FEMA violations, get away with a small penalty
    Mar 08, 2011
    Contravention is the breach of provisions and norms under the Foreign Exchange Management Act, or FEMA 1999. Compounding of contraventions refers to the process where the individual or the corporate entity can admit the contravention and seek redress from the Reserve Bank, restricted to a specific sum. The applications for compounding contraventions are categorised into technical, material or sensitive by the Reserve Bank of India. The contravention involving money laundering, national and security concerns involving serious infringement of the regulatory framework, etc, are sensitive contraventions.
  • BCCI surety to foreign players illegal?
    Apr 22, 2010
    The Enforcement Directorate, which deals with foreign exchange violations, may begin a probe into the world’s richest cricket body - the Board of Control for Cricket in India, said senior officials in the government.The probe, if happens, will be for BCCI guaranteeing a minimum payment for overseas cricketers to play in the Twenty20 limited over cricket tournament run by the Indian Premier League, or IPL.
Sign Up!  |  Forgot Password?