FEMA & FDI Ready Reckoner

This book provides complete and accurate information about all provisions of the Foreign Exchange Management Act 1999 (FEMA). It also includes guidance on practical issues faced by companies and FEMA professionals.

This book will be helpful for Companies dealing with foreign exchange, FEMA professionals, Legal and financial advisors, and Students and academicians in financial law.

The Present Publication is the 22nd Edition | 2025 and amended up to 1st December 2024. This book is authored by Taxmann’s Editorial Board with the following noteworthy features:

[Topic-wise Commentary] The book provides a detailed commentary on over 50 topics, providing in-depth insights and explanations to enhance the reader’s understanding
[Comprehensive Analysis] It includes the analysis along with relevant rules, judicial pronouncements, circulars, notifications, and master directions issued by the Reserve Bank of India, ensuring a well-rounded perspective on the subject
[Focused Guides] Special guides on topics such as Liberalised Remittance Scheme (LRS) and Overseas Investment are provided, providing targeted information
[Legal Context] The book also covers laws related to the following:
Prevention of Money Laundering Act (PMLA)
Foreign Contribution (Regulation) Act (FCRA)
Conservation of Foreign Exchange and Prevention of Smuggling Activities Act (COFEPOSA)
The coverage of this book is as follows:

FEMA ? Overview
An introductory chapter that sets the stage by explaining the fundamental principles and objectives of FEMA, offering a bird’s eye view of the act
Authorised Person
Discusses the roles and responsibilities of authorised persons under FEMA, including their regulatory obligations and operational guidelines
Accounts in India by Person Resident Out of India
Provides detailed procedures and regulations for maintaining accounts in India by non-residents, encompassing various account types and compliance requirements
Accounts of Indian Residents in Foreign Currency
Explains the norms and guidelines for Indian residents holding foreign currency accounts, including the conditions and permissible transactions
Receipt and Payment in Foreign Exchange
Covers the rules and regulations governing the receipt and payment in foreign exchange, detailing the procedural and compliance aspects
Realisation, Repatriation and Surrender of Foreign Exchange
Elaborates on the obligations related to the realisation, repatriation, and surrender of foreign exchange earnings
Money Changing Activities
Provides an overview of money-changing activities, including licensing requirements, operational guidelines, and compliance issues
Money Transfer Service Scheme (MTSS)
Discusses the MTSS, including its regulatory framework, permissible transactions, and operational guidelines.
Possession and Retention of Foreign Currency
Explains the regulations related to the possession and retention of foreign currency by residents and non-residents
Export and Import of Currency or Currency Notes
Details the rules governing the export and import of currency and currency notes, including limits and reporting requirements
Remittances on Current Account
Discusses the permissible current account transactions and the procedural requirements for making remittances
Liberalised Remittance Scheme (LRS)
Provides an in-depth guide on LRS, including eligibility, permissible transactions, limits, and reporting requirements
Export of Goods and Services
Covers the procedural and regulatory aspects of exporting goods and services from India, including documentation and compliance
Import of Goods and Services
Details the regulations governing the import of goods and services, including the procedural requirements and compliance issues
Project Exports and Service Exports
Discusses the regulatory framework for project and service exports, including guidelines and compliance requirements
Foreign Exchange Rates
Provides an overview of the determination and regulation of foreign exchange rates, including the role of the RBI
Overview of Capital Account Transactions
Explains the principles governing capital account transactions under FEMA, including permissible transactions and compliance requirements
Foreign Investment in India
Offers detailed guidelines on foreign investment in India, including regulatory approvals and compliance
FDI in Indian Company
Discusses the procedures and regulations for Foreign Direct Investment (FDI) in Indian companies, including sector-specific guidelines
Sector-wise FDI Policy at a Glance
Provides a summary of FDI policies across various sectors, highlighting key regulations and compliance requirements
FDI ? Downstream Investment, i.e. Indirect Investment
Explains the norms for downstream or indirect investment by foreign entities in India
FDI through Rights, Bonus, Sweat Equity or Merger/Amalgamation
Discusses the regulatory framework for FDI through rights issues, bonus issues, sweat equity, and mergers/amalgamations
FDI ? Transfer of Securities
Details the procedures and regulations for the transfer of securities involving FDI
FDI in LLP
Provides guidelines for Foreign Direct Investment in Limited Liability Partnerships (LLPs) in India
FDI in GDR/ADR
Discusses the norms for FDI through Global Depository Receipts (GDR) and American Depository Receipts (ADR)
Investment by NRI or OCI
Offers guidelines for investments in India by Non-Resident Indians (NRI) or Overseas Citizens of India (OCI)
FDI in a Startup Company
Discusses the regulatory framework for FDI in Indian startup companies
Investment by Foreign Portfolio Investor
Provides an overview of the regulations governing investments by Foreign Portfolio Investors (FPI)
FDI in Investment Vehicle
Explains the norms for FDI in investment vehicles such as Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs)
FDI by FVCI
Discusses the regulatory framework for FDI by Foreign Venture Capital Investors (FVCI)
FDI ? Investment in Securities by Funds, Foreign Central Bank, etc.
Provides guidelines for FDI through investments in securities by foreign funds, central banks, and other entities
Overseas Investment by an Indian Entity
Offers a detailed guide on overseas investments by Indian entities, including regulatory approvals and compliance
Guarantees
Discusses the regulatory framework for providing and receiving guarantees under FEMA
Insurance
Explains the norms for foreign investment in the insurance sector in India
Borrowing and Lending in Foreign Currency
Provides guidelines for borrowing and lending in foreign currency under FEMA
Borrowing and Lending in Indian Rupees
Discusses the regulations governing borrowing and lending in Indian Rupees involving foreign entities
Foreign Investment in Debt Instruments
Provides an overview of the norms for foreign investment in debt instruments in India
External Commercial Borrowings
Discusses the regulatory framework for External Commercial Borrowings (ECB), including eligibility and compliance requirements
Trade Credit (TC) and Structured Obligations
Explains the regulations for trade credit and structured obligations under FEMA
Acquisition and Transfer of Immovable Property in India
Provides guidelines for the acquisition and transfer of immovable property in India by non-residents
Acquisition and Transfer of Immovable Property Outside India
Discusses the norms for Indian residents acquiring and transferring immovable property outside India
Remittance of Assets
Explains the procedures for the remittance of assets under FEMA
Branch/LO/Project Office in India by Foreign Entities
Discusses the regulatory framework for setting up and operating branch, liaison, or project offices in India by foreign entities
Indian Depository Receipts
Provides guidelines for the issuance and regulation of Indian Depository Receipts (IDR)
Risk Management and Inter-Bank Dealings
Explains the norms for risk management and inter-bank dealings under FEMA
Vostro Account for International Trading
Discusses the regulatory framework for Vostro accounts used in international trading
Industrial Policy of Government of India
Provides an overview of the industrial policies of the Government of India impacting foreign exchange management
Enforcement of FEMA
Discusses the enforcement mechanisms for ensuring compliance with FEMA
Penalties under FEMA
Provides guidelines on the penalties for contraventions under FEMA
Appeals under FEMA
Explains the procedures for appealing against orders under FEMA
Compounding of Contraventions under FEMA
Discusses the process for compounding contraventions under FEMA
Prevention of Money Laundering Act
Provides an overview of the PMLA and its relevance to FEMA
Foreign Contribution (Regulation) Act (FCRA)
Discusses the regulatory framework for foreign contributions under the FCRA
COFEPOSA, 1974
Provides guidelines on the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974
International Financial Services Centre (IFSC)
Discusses the regulations governing the IFSC and its role in foreign exchange management