| Date: |
16-10-2014
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| Notification No: |
RBI/2014-15/266 A.P. (DIR Series) Circular No.36
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| Issuing Authority: |
RBI
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| Type: |
A.P.D.(Series) Circulars
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| File No: |
RBI/2014-15/266 |
| Subject: |
Foreign Exchange Management Act, 1999 (FEMA) Foreign Exchange (Compounding Proceedings) Rules, 2000 (the Rules) - Compounding of Contraventions under FEMA, 1999
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RBI/2014-15/266
A.P. (DIR Series) Circular No.36
October 16, 2014
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Foreign Exchange Management Act, 1999 (FEMA) Foreign Exchange
(Compounding Proceedings) Rules, 2000 (the Rules) - Compounding of
Contraventions under FEMA, 1999
Attention of all the Authorised Dealer Category - I (AD Category - I)
banks and their constituents is invited to
A.P. (DIR Series) Circular no. 117
dated April 4, 2014 and the Foreign Exchange (Compounding Proceedings) Rules,
2000 notified by the Government of India vide G.S.R.No.383 (E) dated 3rd May
2000, as amended from time to time regarding delegation of powers to the
Regional Offices of the Reserve Bank of India to compound the contraventions of
FEMA.
- In partial modification thereof, it has been decided to delegate further
powers to Regional Offices as under:
| Sr. No. |
FEMA Regulation |
Brief Description of Contravention |
| 1 |
Regulation 10 A (b)(i) read with paragraph 10 of Schedule I to
FEMA
20/2000-RB dated May 3, 2000 |
Delay in submission of form FC-TRS on transfer of shares from
Resident to Non-Resident. |
| 2 |
Regulation 10 B(2) read with paragraph 10 of Schedule I to FEMA
20/2000-RB dated May 3, 2000 |
Delay in submission of form FC-TRS on transfer of shares from
Non-Resident to Resident. |
| 3 |
Regulation 4 of
FEMA 20/2000-RB dated May 3, 2000 |
Taking on record transfer of shares by investee company, in the
absence of certified form FC-TRS. |
- The work of three divisions of Foreign Investment Division (FID) viz.
Liaison/ Branch/ Project office(LO/ BO/ PO) division, Non Resident Foreign
Account Division (NRFAD) and Immovable Property (IP) Division has been
transferred to FED, CO Cell, Reserve Bank of India, 6, Sansad Marg, New Delhi-
110001 with effect from July 15, 2014. Accordingly, the officers attached to the
FED, CO Cell, New Delhi office are now authorised to compound the contraventions
as under:
- The powers to compound the contraventions at Paragraph 2 and Paragraph 3
above have been delegated to all Regional Offices (except Kochi and Panaji) and
FED, CO Cell, New Delhi respectively without any limit on the amount of
contravention. Kochi and Panaji Regional offices can compound the above
contraventions for amount of contravention below Rupees one hundred lakh
(Rs.1,00,00,000/-). The contraventions of Rupees one hundred lakh
(Rs.1,00,00,000/-) or more under the jurisdiction of Panaji and Kochi Regional
Offices and all other contraventions of FEMA will continue to be compounded at
Cell for Effective Implementation of FEMA (CEFA), Mumbai, as hitherto.
- Accordingly, applications for compounding the above contraventions as at
Paragraph 2 and Paragraph 3 above, up to the amount of contravention stated
therein may be submitted by the concerned entities to the respective Regional
Offices under whose jurisdiction they fall or to FED, CO Cell, New Delhi
respectively. For all other contraventions, applications may continue to be
submitted to CEFA, Foreign Exchange Department, 5th floor, Amar Building, Sir
P.M.Road, Fort, Mumbai 400001.
- The above modifications will come into force with immediate effect. All other
instructions on compounding shall remain unchanged.
- Authorised Dealers may bring the contents of this circular to the notice of
their constituents and customers concerned.
- The directions contained in this circular have been issued under sections 10
(4) and 11 (1) of the Foreign Exchange Management Act, 1999 (42 of 1999).
Yours faithfully,
(B. P. Kanungo)
Principal Chief General Manager
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