Home List Manuals FEMAFEMA Ready ReckonerCapital Account Transactions This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
Prohibited Capital Account Transaction - FEMA Ready Reckoner - FEMAExtract Prohibited Capital Account Transaction Prohibition - Regulation 4 of Foreign Exchange Management (Permissible Account Transaction) Regulation, 2000, (a) Prohibition for Person individual No person shall undertake or sell or draw foreign exchange to or from an authorised person for any capital account transaction, (a) a resident individual may, draw from an authorized person foreign exchange not exceeding USD 2,50,000/- per financial year or such amount as decided by Reserve Bank from time to time for a capital account transaction specified in Schedule I . Explanation: Drawal of foreign exchange as per item number 1 of Schedule III to Foreign Exchange Management (Current Account Transactions) Rules, 2000 dated 3rd May, 2000 as amended from time to time, shall be subsumed within the limit under proviso (a) above. Drawal Means define under regulation 2 (b) of of Foreign Exchange Management (Permissible Account Transaction) Regulation, 2000, Drawal Means of foreign exchange from an authorised person and includes opening of Letter of Credit or use of International Credit Card or International Debit Card or ATM card or any other thing by whatever name called which has the effect of creating foreign exchange liability. (b) Where the drawal of foreign exchange by a resident individual for any capital account transaction specified in Schedule I exceeds USD 2,50,000/- per financial year, or as decided by Reserve Bank from time to time as the case may be, the limit specified in the regulations relevant to the transaction shall apply with respect to such drawal. No part of the foreign exchange of USD 2,50,000/-, drawn under proviso (a) shall be used for remittance directly or indirectly to countries notified as non-cooperative countries and territories by Financial Action Task Force (FATF) from time to time and communicated by the Reserve Bank of India to all concerned. (b) Prohibition for Person resident outside India No person resident outside India shall make investment in India , in any form, in any company or partnership firm or proprietary concern or any entity, whether incorporated or not, which is engaged or proposes to engage - in the business of chit fund, or Exception:- The Registrar of Chits or an officer authorised by the state Government in this behalf, may, in consultation with the State Government concerned, permit any chit fund to accept subscription from Non-resident Indians. Non-resident Indians shall be eligible to subscribe, through banking channel and on non- repatriation basis, to such chit funds, without limit subject to the conditions stipulated by the Reserve Bank of India from time to time. as Nidhi Company , or in agricultural or plantation activities or in real estate business, or construction of farm houses or real estate business shall not include development of townships, construction of residential/commercial premises, roads or bridges and Real Estate Investment Trusts (REITs) registered and regulated under the SEBI (REITs) Regulations 2014. in trading in Transferable Development Rights (TDRs). (c) Prohibition for Person resident in India No person resident in India shall undertake any capital account transaction which is not permissible in terms of Order S.O. 1549(E) dated April 21, 2017, as amended from time to time, of the Government of India, Ministry of External Affairs, with any person who is, a citizen of or a resident of Democratic People s Republic of Korea, or an entity incorporated or otherwise, in Democratic People s Republic of Korea, until further orders , unless there is specific approval from the Central Government to carry on any transaction. (d) Prohibition forexisting investment transactions The existing investment transactions , with any person who is, a citizen of or resident of Democratic People s Republic of Korea, or an entity incorporated or otherwise in Democratic People s Republic of Korea, or any existing representative office or other assets possessed in Democratic People s Republic of Korea, by a person resident in India, which is not permissible in terms of Order S.O. 1549(E) dated April 21, 2017, as amended from time to time, of the Government of India, Ministry of External Affairs shall be closed/liquidated/disposed/settled within a period of 180 days from the date of issue of this Notification , unless there is specific approval from the Central Government to continue beyond that period. Regulation 5 - Method of payment for investment of Foreign Exchange Management (Permissible Account Transaction) Regulation, 2000 The payment for investment shall be made by remittance from abroad through normal banking channels or by debit to an account of the investor maintained with an authorised person in India in accordance with the regulations made by the Reserve Bank under the Act. Regulation 6 - Declaration to be furnished of Foreign Exchange Management (Permissible Account Transaction) Regulation, 2000 Every person selling or drawing foreign exchange to or from an authorised person for a capital account transaction shall furnish a declaration in relevant transaction to the Reserve Bank.
|