December 30, 2011
- Compounding of Contraventions under FEMA, 1999: RBI Vide Circular RBI/2011-12/298 A.P. (DIR Series) Circular No.57 dated 13th December, 2011 notified that as a measure of customer service and for operational convenience, powers have been delegated to the Regional Offices of the Reserve Bank of India to compound certain contraventions of FEMA 1999. The contraventions include: (i) delay in reporting of inward remittance, (ii) delay in filing of form FC-GPR after allotment of shares and (iii) delay in issue of shares beyond 180 days. (i.e. paragraphs 9(1)(A), 9(1)(B) and 8, respectively, of Schedule I to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000, notified vide Notification No. FEMA 20/2000-RB dated 3rd May 2000 and as amended from time to time).
The powers delegated are:
S. No. Contraventions Regional Offices Amount of Contravention 1. Delay in reporting of inward remittance and delay in filing of form FC-GPR after allotment of shares Bhopal, Bhubaneshwar, Chandigarh, Guwahati, Jaipur, Jammu, Kanpur, Kochi, Patna and Panaji Below Rupees One Crore only 2. Delay in reporting of inward remittance, delay in filing of form FC-GPR after allotment of shares and delay in issue of shares beyond 180 days Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi Without any limit
- FDI in India - Issue of equity shares under the FDI scheme allowed under the Government route: RBI Vide RBI/2011-12/295A. P. (DIR Series) Circular No.55 dated 9th December 2011 has amended certain conditions in the A.P. (DIR Series) Circular No. 74 dated June 30, 2011, allowing thereby issue of equity shares/ preference shares under the Government route by conversion of import of capital goods, / machineries / equipments (including second-hand machineries) and pre-operative / pre-incorporation expenses (including payments of rent, etc.), subject to terms and conditions stated therein.