Regulations and Management of Foreign Exchange by FEMA Experts

The following are the regulations and restrictions set forth by the Reserve Bank of India for foreign exchange transactions defined under the FEMA experts rules.

FEMA consultants are perhaps the most underappreciated business professionals in the world. Having the knowledge of both Indian, and foreign accounting techniques, these professionals provide a wide variety of services. However, there are not many who are interested in their services. The variety of reasons are as follows:

1. What if they were jack of all and master of none?
2. What if these experts make my business more complex than it needs to be?
3. They must be really expensive.

Such “excuses” make these FEMA experts fly under the radar. But why are singing praises about these experts? What is the exact reason behind our admiration? Let us discuss.

Foreign Exchange Dealings

• Any permitted entity must not deal in or transfer foreign currencies or security to unauthorized persons.
• Any permitted entity must not make any payment to or for the credit of any person resident outside India.
• Any permitted entity must not receive otherwise through an authorized person, any payment by order, or on behalf of any resident outside India.
• Any permitted entity must not enter into any financial transaction in India as consideration for or in association with the acquisition, creation, or transfer of a right to acquire any asset outside India by any person.

Foreign Exchange Holdings

Any permitted entity, a resident in India, must not acquire, hold, own, possess or transfer any foreign exchange, foreign security or immovable property outside India.

Current Account Transactions

Any permitted entity can sell or draw foreign exchange to or from an authorized person if such sale or drawal is a current account transaction. But the Central Government, in the public interest and in consultation with the Reserve Bank, can impose reasonable restrictions on current account transactions.

Also Read: Company Registration

Capital Account Transactions

• Any permitted entity can sell or draw foreign exchange to or from an authorized person for a capital account transaction.
• The Reserve Bank, in consultation with the Central Government, can specify
  • Class(s) of permissible capital account transactions.
  • Limit up to which foreign exchange must be admissible for such transactions.
  • Or any other condition(s) which may be placed on such transactions.

The Reserve Bank must not impose any restriction on the drawal of foreign exchange for payments due on amortization of loans or not depreciation of direct investments in the ordinary course of business.

Commodities and Services exports

• Every exporter must furnish to the Reserve Bank a declaration containing true and correct material particulars, including the amount representing the full export value or, if the full export value of the goods is not ascertainable at the time of export, the value which the exporter, having regard to the prevailing market conditions, expects to receive on the sale of the goods in a market outside India.
• Every exporter must furnish to the Reserve Bank such other information as required by the Bank to ensure the realization of the export proceeds by such exporter.
• The Reserve Bank must ensure that the full export value of the goods or such reduced value of the goods as the Bank determines is received without any delay and direct any exporter to comply with such requirements as it deems fIn addition, they must have regard for the prevailing market conditions.
• Every exporter of services must furnish to the Reserve Bank a declaration containing the true and correct material particulars in relation to a payment for such services.

Foreign Exchange realization and repatriation

Suppose any amount of foreign exchange is due or has accrued to any person resident in India. In that case, such a person must take all reasonable steps to realize and repatriate to India such foreign exchange within the period and manner specified by the Reserve Bank.

Also Read: Can you apply for AYUSH license online?

Consult Registrationwala for FEMA experts

Registrationwala provides active FEMA Experts and FEMA consultant services in the metropolitans, Delhi and Mumbai to help our clients with a plethora of services like the one mentioned below:

1. Firstly, To provide FEMA consultations to foreigners and NRIs for investments in Indian businesses.
2. Secondly, To help the clients understand the complex FEMA rules and regulations.
3. After that, To assist in both inbound and outbound investments through our FEMA consultants.
4. Then, To assist in legal matters that include litigation through our FEMA experts.
5. Meanwhile, Representation in matters regarding foreign exchange management rules by our FEMA experts.
6. At the last, Conducting all the necessary legwork required to set up global business entities like joint ventures by FEMA experts.

What can you expect from us?

Experience, professionalism, and ethical conduct of services. This is all what our FEMA experts and FEMA consulktants have to offer.