FEMA Practice Manual book by Sudha G. Bhushan

This book aims to simplify the fundamentals while providing exhaustive coverage of the relevant laws and regulations. It provides a comprehensive commentary on various sections, rules, and regulations under the Foreign Exchange Management Act (FEMA), making it a complete guide to foreign investment provisions.

This book is a comprehensive resource for professionals and Authorized Dealer (AD) banks, enabling effective management and implementation of Foreign Exchange law in India. It is a one-stop solution for:

• Professionals, including Chartered Accountants, Company Secretaries, Cost Accountants, and Lawyers
• Chief Financial Officers (CFOs) of multinational and Indian companies
• Authorised Dealer Banks
• Students
• Individuals interested in international transactions

The Present Publication is the 3^nd Edition, authored by CA Sudha G. Bhushan. It is amended up to 7^th June 2024, with the following noteworthy features:

• [In-depth Analysis] Detailed commentary on every section of FEMA, providing a thorough understanding of the law
• [Essential Resource] A must-have for persons managing trade or capital account transactions
• [Clear Guidance] Simplifies various provisions with easy-to-understand language and practical examples based on real case studies
• [Key Concepts Explained] Breaks down essential concepts like Residential Status and Capital/Current Account transactions with numerous examples
• [User-friendly Approach] Includes pictorial representations, checklists, examples, case studies, and RBI compounding orders to make complex laws comprehensible
• [Practical Focus] Provides detailed guidelines and procedures for transactions, making it easy to understand and apply the law

The contents of the book are as follows:

• [Fundamentals]
• This division covers the historical background and regulatory framework of FEMA, illustrating the paradigm shift from FERA to FEMA
• It includes detailed commentary on current and capital account transactions, currency management, and the roles of regulatory bodies like the Reserve Bank of India (RBI) and the Central Government
• This division also explains the balance sheet approach to evaluate transactions under FEMA and provides guidelines on maintaining foreign currency accounts
• [Foreign Investment]
• This unit provides an in-depth analysis of foreign investment regulations, including Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI)
• It discusses the governing regulations, types of foreign investments, entry routes, pricing methodologies, and downstream investments, offering practical insights for effective compliance and management
• [Cross Border Assets]
• This unit focuses on the acquisition and transfer of immovable property in India by non-residents and vice versa
• It addresses the restrictions, procedural requirements, and conditions for repatriation of sale proceeds, ensuring a clear understanding of cross-border asset management
• [Borrowings]
• This unit discusses the various aspects of borrowings, including trade finance, External Commercial Borrowings (ECB), acceptance of deposits, and issuance of guarantees
• It provides detailed guidelines on the procedures, compliance requirements, and benefits associated with different types of borrowings
• [International Financial Services Centre (IFSC)]
• This unit explains the strategic objectives, benefits, and regulatory framework of IFSCs
• It highlights the promotion of investments in IFSCs by the Central Government and discusses the provisions related to overseas investment in and out of IFSCs
• [Trade Transactions]
• This unit covers the regulations governing exports, imports, and merchanting trade
• It details the procedural requirements, obligations of exporters, realisation and repatriation of export proceeds, and the various types of exports, providing a comprehensive guide for trade-related transactions
• [Contravention and Offences]
• This unit addresses the consequences of non-compliance with FEMA, including the process of compounding, penalty provisions, adjudication procedures, and the role of the Enforcement Directorate
• It provides practical examples and case studies to illustrate the compounding process and the implications of non-compliance
• [Overseas Investment]
• This unit provides a detailed framework of the new overseas investment regime, including definitions, pre-conditions, routes, and pricing guidelines for making overseas investments
• It covers the roles and responsibilities of AD banks, reporting requirements, and the procedures for disinvestment and restructuring