RBI/2014-15/1
Master Circular No. 9/2014-15
July 01, 2014
To,
All Authorised Dealer Category - I Banks and Authorised Banks
Madam / Sir,
Master Circular on Compounding of Contraventions under FEMA, 1999
The compounding of contraventions under Foreign Exchange Management Act
(FEMA), 1999 is a voluntary process by which an applicant can seek compounding
of an admitted contravention of any provision of FEMA, 1999 under Section 13(1)
of the FEMA, 1999.
- This Master Circular consolidates the existing instructions on the subject of
Compounding of Contraventions under FEMA, 1999" at one place. The list of
underlying circulars / notifications, consolidated in this Master Circular, is
furnished in the Appendix.
- This Master Circular is being updated from time to time as and when the fresh
instructions are issued. The date up to which the Master Circular has been
updated is suitably indicated.
- This Master Circular may be referred to for general guidance. The Authorised
Persons and the Authorised Dealer Category – I banks may refer to respective
circulars/ notifications for detailed information, if so needed.
Yours faithfully,
(B.P.Kanungo)
Principal Chief General Manager
1. General
1.1 In terms of Section 13(1) , Chapter IV of FEMA 1999, if any person
contravenes any provision of FEMA, 1999, or any rule, regulation, notification,
direction or order issued in exercise of the powers under this Act, or
contravenes any condition subject to which an authorization is issued by the
Reserve Bank, he shall, upon adjudication, be liable to a penalty up to thrice
the sum involved in such contravention where the amount is quantifiable or up to
Rupees Two lakh, where the amount is not quantifiable and where the
contravention is a continuing one, further penalty which may extend to Rupees
Five thousand for every day after the first day during which the contravention
continues. The provisions of Section 15 of FEMA, 1999 permit compounding of
contraventions and empower the Compounding Authority to compound any
contravention as defined under Section 13 of the Act on an application made by
the person committing such contravention. In terms of rule 4 of the Foreign
Exchange (Compounding Proceedings) Rules, 2000, the powers to compound the
contraventions have been prescribed for compounding authorities with regard to
the sum involved in such contravention and no contravention shall be compounded
unless the amount involved in the contravention is quantifiable.
1.2 The Government of India has, in consultation with the Reserve Bank placed
the responsibility of administering compounding of contraventions with the
Reserve Bank, except contraventions under Section 3(a) of FEMA, 1999.
Accordingly, Foreign Exchange (Compounding Proceedings) Rules, 2000 have been
framed by the Government of India empowering the Reserve Bank to compound
contraventions under FEMA, 1999 with a view to provide comfort to individuals
and corporate community by minimizing transaction costs, while taking severe
view of willful, malafide and fraudulent transactions.
2. Compounding Powers
2.1 The compounding powers of the Reserve Bank and the Directorate of
Enforcement (DoE), respectively, are as under:
(a) Reserve Bank has been empowered to compound the contraventions of all the
Sections of FEMA, 1999, except clause (a) of Section 3 of the Act, ibid.
(b) Directorate of Enforcement would exercise powers of compounding under clause
(a) of Section 3 of FEMA, 1999 (dealing essentially with Hawala transactions).
2.2 For effective implementation of compounding process under FEMA, 1999, the
Government of India has framed the procedure for compounding of contraventions.
Once a contravention has been compounded by the Compounding Authority, no
proceeding or further proceeding will be initiated or continued, as the case may
be, against the contravener.
3. Delegation of Powers
3.1 As a measure of customer service and in order to facilitate the operational
convenience, compounding powers were delegated to the Regional Offices of the
Reserve Bank of India to compound the following contraventions of FEMA , 1999:
Sr. No. |
FEMA Regulation |
Brief Description of Contravention |
1 |
Paragraph 9(1)(A) of Schedule I to FEMA
20/2000-RB dated May 3, 2000 |
Delay in reporting inward remittance received for
issue of shares. |
2 |
Paragraph 9(1)(B) of Schedule I to
FEMA 20/2000-RB dated May 3, 2000 |
Delay in filing form FC(GPR) after issue of shares. |
3 |
Paragraph 8 of Schedule I to
FEMA 20/2000-RB dated May 3, 2000 |
Delay in issue of shares/refund of share application
money beyond 180 days, mode of receipt of funds, etc. |
4 |
Paragraph 5 of Schedule I to
FEMA 20/2000-RB dated May 3, 2000 |
Violation of pricing guidelines for issue of shares. |
5 |
Regulation 2(ii) read with Regulation 5(1) of
FEMA 20/2000-RB dated
May 3, 2000 |
Issue of ineligible instruments such as
non-convertible debentures, partly paid shares, shares with optionality
clause, etc. |
6 |
Paragraph 2 or 3 of Schedule I to
FEMA 20/2000-RB dated May 3, 2000 |
Issue of shares without approval of RBI or FIPB
respectively, wherever required. |
3.2 The above contraventions can be compounded by all Regional Offices (except
Kochi and Panaji) 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 above Rupees one hundred lakh (Rs.1,00,00,000/-) 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.
3.3. Accordingly, applications for compounding related to the above
contraventions may be submitted by the concerned entities to the respective
Regional Offices under whose jurisdiction they fall. 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.
4. Process of Compounding
4.1 An application for compounding of a contravention under FEMA, 1999 may be
submitted to the Compounding Authority (CA) on being advised of a contravention
under FEMA, 1999, either through a memorandum or suo moto on being made or on
becoming aware of the contravention. The format of the application is appended
to the Foreign Exchange (Compounding Proceedings) Rules, 2000 (Annex-I).
4.2 Along with the application in the prescribed format, the applicant may also
furnish the details as per the enclosed Annexes (Annex-II) relating to Foreign
Direct Investment, External Commercial Borrowings, Overseas Direct Investment
and Branch Office / Liaison Office, as applicable, a copy of the Memorandum of
Association and latest audited balance sheet along with an undertaking that they
are not under investigation of any agency such as DOE, CBI, etc. in order to
complete the compounding process within the time frame.
4.3 All applications for compounding whether on the advice of the Regional
Office concerned or suo-moto, relating to the contraventions mentioned at
paragraph 3.1 (a) and (b) above and up to the amount of contravention stated
therein, may be submitted by the companies/individuals falling under the
jurisdiction of the aforesaid Regional Offices directly to the Regional Office
concerned, together with the prescribed fee of Rs.5000/- by way of a demand
draft drawn in favour of “Reserve Bank of India” and payable at the concerned
Regional Office. Applications for compounding of all other contraventions
together with the prescribed fee of Rs.5000/- by way of a demand draft drawn in
favour of “Reserve Bank of India” and payable at Mumbai may be submitted to: The
Compounding Authority, [Cell for Effective implementation of FEMA (CEFA)],
Foreign Exchange Department, 5th floor, Amar Building, Sir P.M. Road, Fort,
Mumbai- 400001.
4.4 On receipt of the application for compounding, the proceedings would be
concluded and an order issued by the CA within 180 days from the date of the
receipt of the application for compounding. The time limit for this purpose
would be reckoned from the date of receipt of the completed application for
compounding by the Reserve Bank.
4.5 The CA may call for any additional information, record or any other document
relevant to the compounding proceedings. Such additional information/ documents
are required to be submitted within the period as may be specified by the CA and
the application may be rejected if such information/documents are not submitted
within the prescribed time.
4.6 The application will be examined in terms of sub rule (1) of rule (4) of the
Foreign Exchange (Compounding Proceedings) Rules, 2000 to assess whether the
contravention is compoundable and the amount of contravention is accordingly
quantified.
4.7 The nature of contravention is ascertained keeping in view, inter alia, the
following indicative points :
a. whether the contravention is technical and / or minor in nature and needs
only an administrative cautionary advice;
b. whether the contravention is serious in nature and warrants compounding of
the contravention; and
c. whether the contravention, prima facie, involves money-laundering, national
and security concerns involving serious infringement of the regulatory
framework.
However, the Reserve Bank reserves the right to classify the contraventions as
stated above and neither the contravener nor others have any right to classify
any contravention as technical suo moto.
4.8 It is clarified that whenever a contravention is identified by the Reserve
Bank or brought to its notice by the entity involved in contravention by way of
a reference other than through the prescribed application for compounding, the
Bank will continue to decide (i) whether a contravention is technical and/or
minor in nature and, as such, can be dealt with by way of an administrative/
cautionary advice; (ii) whether it is material and, hence, is required to be
compounded for which the necessary compounding procedure has to be followed or
(iii) whether the issues involved are sensitive / serious in nature and,
therefore, need to be referred to the Directorate of Enforcement (DOE). However,
once a compounding application is filed by the concerned entity suo moto,
admitting the contravention, the same will not be considered as ‘technical’ or
‘minor’ in nature and the compounding process shall be initiated in terms of
section 15 (1) of Foreign Exchange Management Act, 1999 read with Rule 9 of
Foreign Exchange (Compounding Proceedings) Rules, 2000.
4.9 The disposal of the compounding application is made by issue of a
Compounding Order specifying the provisions of FEMA,1999 or any rule,
regulation, notification, direction or order issued in exercise of the powers
under FEMA, 1999, in respect of which contravention has taken place.
4.10 Where there is sufficient cause for further investigation, the Reserve Bank
may refer the matter to the Directorate of Enforcement for further investigation
and necessary action under FEMA, 1999, or to the Anti- Money Laundering
Authority instituted under the Prevention of Money Laundering Act (PMLA), 2002
or to any other agencies, as deemed fit. Such applications will be disposed of
by returning the application to the applicant.
5. Scope and Manner of Compounding
5.1 The CA will exercise jurisdiction in respect of the contraventions admitted
to have been committed in relation to any of the provisions of the FEMA, 1999,
or any rule, regulation, notification, direction or order issued in exercise of
the powers under FEMA, 1999.
5.2 The application for compounding will be disposed of on merits, upon
consideration of the records and submissions and at the absolute discretion of
the CA. The following factors, which are only indicative, may be taken into
consideration for the purpose of passing the Compounding Order and for arriving
at the quantum of sum on payment of which contravention shall be compounded:
- the amount of gain of unfair advantage, wherever quantifiable, made as a
result of the contravention;
- the amount of loss caused to any authority / agency / exchequer as a result
of the contravention;
- economic benefits accruing to the contravener from delayed compliance or
compliance avoided;
- the repetitive nature of the contravention, the track record and / or
history of non-compliance of the contravener;
- contravener’s conduct in undertaking the transaction and disclosure of full
facts in the application and submissions made during the personal hearing; and
- any other factor considered relevant and appropriate.
6. Issue of the Compounding Order
6.1 An opportunity for personal hearing is given to the applicant for further
submission of documents in person in support of the application within a
specified period. The contravener or its authorized representative can choose
not to appear in person or make any submissions before the CA for personal
hearing The CA will proceed with the processing of the compounding application
on the basis of information and documents available in the application for
compounding.
6.1.1 It is clarified that appearing for a personal hearing before the
compounding authority is optional and the applicant can choose not to appear for
it. The applicant may enclose full information relating to the case as
prescribed in
AP (Dir series) Circular Nos. 56 and
57 dated June 28, 2010 and
December 13, 2011 respectively, with the application or thereafter and may
exercise his discretion with regard to appearing for hearing. Further, if the
applicant opts for appearing for the personal hearing, the Reserve Bank would
encourage the applicant to appear directly for it rather than being represented
/ accompanied by legal experts / consultants, as compounding is only for
admitted contraventions. (as amended vide Press release no. 2012-2013/1215 dated
January 18, 2013)
6.2 The Compounding Authority will pass a compounding order on the basis of the
averments made in the application as well as other documents and submissions
made in this context by the contravener during the personal hearings, if any.
6.3 Where the compounding of any contravention is made after making of a
complaint under sub-section (3) of section 16 of FEMA, 1999 as the case may be,
one copy of the compounding order made under sub rule (2) of Rule 8 of Foreign
Exchange (Compounding Proceedings) Rules, 2000 will be provided to the applicant
(the contravener) and also to the Adjudicating Authority.
7. Post-compounding procedure
7.1 The sum for which the contravention is compounded as specified in the order
of compounding under sub-rule (2) of Rule 8 of Foreign Exchange (Compounding
Proceedings) Rules, 2000 is payable by way of a demand draft in favour of the
“Reserve Bank of India” within fifteen days from the date of the order of
compounding of such contravention. The demand draft has to be deposited in the
manner as directed in the compounding order.
7.2 On realization of the demand draft for the sum for which contravention is
compounded, a certificate in this regard shall be issued by the Reserve Bank
subject to the specified conditions, if any, in the order.
7.3 The provisions of the Rules do not confer any right on the contravener,
after a compounding order is passed, to seek to withdraw the order or to hold
the compounding order as void or request a review of the order passed by the CA.
7.4 In case of failure to pay the sum compounded within the time specified in
the compounding order, it shall be deemed in terms of Rule 10 of the Foreign
Exchange (Compounding Proceedings) Rules, 2000, that the contravener had never
made an application for compounding of any contravention under these Rules.
7.5 In respect of the contraventions of FEMA, 1999 (as defined in section 13 of
the FEMA, 1999), which are not compounded by the Compounding Authority, other
relevant provisions of FEMA, 1999, including reference to the Directorate of
Enforcement shall apply.
8. Pre-requisites for compounding process
8.1 In respect of a contravention committed by any person within a period of
three years from the date on which a similar contravention committed by him was
compounded under the Compounding Rules, such contraventions would not be
compounded. Such contravention would be dealt with under relevant provisions of
the FEMA, 1999 for contravention. Any second or subsequent contravention
committed after the expiry of a period of three years from the date on which the
contravention was previously compounded shall be deemed to be a first
contravention.
8.2 Contraventions relating to any transaction where proper approvals or
permission from the Government or statutory authority concerned, as the case may
be, have not been obtained, such contraventions would not be compounded unless
the required approvals are obtained from the authorities concerned.
In case the application has to be returned for this reason or any other reason,
the application fees of Rs.5000/- received along with the application fees is
also returned. To expedite the refund of compounding fees in such cases, it has
been decided to credit the same to the applicant’s account through NEFT. The
applicants are advised to furnish their mandate and details of their bank
account as per Annex III along with the application in the prescribed format and
other documents required to be submitted in terms of the instructions contained
in A.P. (DIR Series)Circular Nos. 56 and 57 dated June 28, 2010 and December 13,
2011 respectively.
8.3 Cases of contravention, such as, those having a money laundering angle,
national security concern and / or involving serious infringements of the
regulatory framework or where the contravener fails to pay the sum for which
contravention was compounded within the specified period in terms of the
compounding order, shall be referred to the Directorate of Enforcement for
further investigation and necessary action under FEMA, 1999 or to the authority
instituted for implementation of the Prevention of Money Laundering Act 2002,
(PMLA) or to any other agencies, for necessary action , as deemed fit.
8.4 The Reserve Bank generally advises the persons concerned of their choice and
option to make an application for compounding as and when such contraventions
come to its notice. The facts constituting such contraventions will be brought
to the notice of the Directorate of Enforcement in case no application for
compounding is made within the time indicated by the Reserve Bank.
Authorised Dealers may take necessary steps to ensure that checks and balances
are incorporated in systems relating to dealing with and reporting of foreign
exchange transactions to Reserve Bank so that contraventions of provisions of
FEMA, 1999 due to the acts of omission and commission of the Authorised Dealers
do not occur. In terms of Section 11(3) of FEMA, 1999, the Reserve Bank may
impose on the authorized person a penalty for contravening any direction given
by the Reserve Bank under this Act or failing to file any return as directed by
the Reserve Bank. (as amended vide
AP DIR Circular No.76 dated January 17, 2013)
Annex-I
Foreign Exchange (Compounding Proceedings) Rules, 2000
Notification No. G.S.R.383(E) dated 3rd May 2000
As amended vide
G.S.R.443(E) dated November 2, 2002
G.S.R. 609 (E) dated September 13, 2004 and
G.S.R. 613 (E) dated August 27, 2008
In exercise of the powers conferred by section 46 read with sub-section (1) of
section 15 of the Foreign Exchange Management Act, 1999 (42 of 1999) the Central
Government hereby makes the following rules relating to compounding
contraventions under chapter IV of the said Act, namely:-
1. Short title and commencement –
(1) These rules may be called the Foreign Exchange (Compounding Proceedings)
Rules 2000.
(2) They shall come into force on the 1st day of June, 2000.
2. Definitions - In these rules, unless the context otherwise requires -
(a) 'Act' means the Foreign Exchange Management Act, 1999 (42 of 1999);
(b) 'authorised officer' means an officer authorised under sub-rule (1) of rule
3;
(c) 'applicant' means a person who makes an application under section 15 (1) of
the Act to the compounding authority;
(d) 'Compounding Order' means an order issued under sub-section (1) of Section
15 of the Act;
(e) 'Form' means a form appended to these rules;
(f) 'section' means a section of the Act;
(g) all other words and expressions used in these rules and not defined but
defined in the Act, shall have the meaning respectively assigned to them in the
Act.
3. (1) 'Compounding Authority' means the persons authorised by the Central
Government under sub-section (1) of section 15 of the Act, namely;
(a) an officer of the Enforcement Directorate not below the rank of Deputy
Director or Deputy Legal Adviser (DLA).
(b) An officer of the Reserve Bank of India not below the rank of the Assistant
General Manager.
4. Power of Reserve Bank to compound contravention -
1[(1) If any Person contravenes any provisions of Foreign Exchange Management
Act, 1999 (42 of 1999) except clause (a) of Section 3 of the Act.]
(a) in case where the sum involved in such contravention is ten lakhs rupees or
below, by the Assistant General Manager of the Reserve Bank of India;
(b) in case where the sum involved in such contravention is more than rupees ten
lakhs but less than rupees forty lakhs, by the Deputy General Manager of Reserve
Bank of India;
(c) in case where the sum involved in the contravention is rupees forty lakhs or
more but less than rupees hundred lakhs by the General Manager of Reserve Bank
of India;
(d) in case the sum involved in such contravention is rupees one hundred lakhs
or more, by the Chief General Manager of the Reserve Bank of India;
Provided further that no contravention shall be compounded unless the amount
involved in such contravention is quantifiable.
(2) Nothing contained in sub-section (1) shall apply to a contravention
committed by any person within a period of three years from the date on which a
similar contravention committed by him was compounded under these rules.
Explanation: For the purposes of this rule, any second or subsequent
contravention committed after the expiry of a period of three years from the
date on which the contravention was previously compounded shall be deemed to be
a first contravention.
(3) Every officer specified under sub-rule (1) of rule 4 of the Reserve Bank of
India shall exercise the powers to compound any contravention subject to the
direction, control and supervision of the Governor of the Reserve Bank of India.
(4) Every application for compounding any contravention under this rule shall be
made in Form to the Reserve Bank of India, Exchange Control Department, Central
Office, Mumbai along with a fee of Rs. 5000/- by Demand Draft in favour of
compounding authority.
5. The Power of Enforcement Directorate to compound contraventions -
2[(1) If any Person contravenes provisions of Section 3(a) of Foreign Exchange
Management Act.]
(a) in case where the sum involved in such contravention is five lakhs rupees or
below, by the Deputy Director of the Directorate of Enforcement;
(b) in case where the sum involved in such contravention is more than rupees
five lakhs but less than rupees ten lakhs, by the Additional Director of the
Directorate of Enforcement;
(c) in case where the sum involved in the contravention is rupees ten lakhs or
more but less than fifty lakhs rupees by the Special Director of the Directorate
of Enforcement;
(d) in case where the sum involved in the contravention is rupees fifty lakhs or
more but less than one crore rupees by Special Director with Deputy Legal
Adviser of the Directorate of Enforcement;
(e) in case the sum involved in such contravention is one crore rupees or more,
by the Director of Enforcement with Special Director of the Enforcement
Directorate.
Provided further that no contravention shall be compounded unless the amount
involved in such contravention is quantifiable.
(2) Nothing contained in sub-section (1) shall apply to a contravention
committed by any person within a period of three years from the date on which a
similar contravention committed by him was compounded under these rules.
Explanation: For the purposes of this rule, any second or subsequent
contravention committed after the expiry of a period of three years from the
date on which the contravention was previously compounded shall be deemed to be
a first contravention.
(3) Every officer of the Directorate of Enforcement specified under sub-rule (1)
of this rule shall exercise the powers to compound any contravention subject to
the direction, control and supervision of the Director of Enforcement.
(4) Every application for compounding any contravention under this rule shall be
made in Form to the Director, Directorate of Enforcement, New Delhi, along with
a fee of Rs.5000 by DD in favour of the Compounding Authority.
6. Where any contravention is compounded before the adjudication of any
contravention under section 16, no inquiry shall be held for adjudication of
such contravention in relation to such contravention against the person in
relation to whom the contravention is so compounded.
7. Where the compounding of any contravention is made after making of a
complaint under sub-section (3) of section 16, such compounding shall be brought
by the authority specified in rule 4 or rule 5 in writing, to the notice of the
Adjudicating Authority and on such notice of the compounding of the
contravention being given, the person in relation to whom the contravention is
so compounded shall be discharged.
8. Procedure for Compounding -
(1) The Compounding Authority may call for any information, record or any other
documents relevant to the compounding proceedings.
(2) The Compounding Authority shall pass an order of compounding after affording
an opportunity of being heard to all the concerned as expeditiously as possible
as and not later than 180 days from the date of application.
9. Payment of amount compounded -
3The sum for which the contravention is compounded as specified in the order of
compounding under sub-rule (2) of rule 8, shall be paid by demand draft in
favour of the Compounding Authority within fifteen days from the date of the
order of compounding of such contravention.
10. In case a person fails to pay the sum compounded in accordance with the rule
9 within the time specified in that rule, he shall be deemed to have never made
an application for compounding of any contravention under these rules and the
provisions of the Act for contravention shall apply to him.
11. No contravention shall be compounded if an appeal has been filed under
section 17 or section 19 of the Act.
12. Contents of the order of the Compounding Authority -
(1) Every order shall specify the provisions of the Act or of the rules,
directions, requisitions or orders made there under in respect of which
contravention has taken place along with details of the alleged contravention.
(2) Every such order shall be dated and signed by the Compounding Authority
under his seal.
13. Copy of the order - One copy of the order made under rule 8(2) shall be
supplied to the applicant and the Adjudicating Authority as the case may be.
Format of Application
Form
(See Rule 4 or 5)
(To be filled in duplicate and shall be accompanied
by certified copy of the Memorandum issued)
- Name of the applicant (in BLOCK LETTERS)
- Full address of the applicant (including Phone and Fax Number and email id)
- Whether the applicant is resident in India or resident outside India [Please
refer to Section 2(v) of the Act]
- Name of the Adjudicating Authority before whom the case is pending
- Nature of the contravention [according to sub-section (1) of Section 13]
- Brief facts of the case
- Details of fee for application of compounding
- Any other information relevant to the case
I/We declare that the particulars given above are true and correct to the best
of my/our knowledge and belief and that I/We am/are willing to accept any
direction/order of the Compounding Authority in connection with compounding of
my/our case.
Dated :
(Signature of the Applicant)
Name
Annex-II- FDI
Details to be furnished along with application for compounding of
contravention relating to Foreign Direct Investment in India
- Name of the applicant
- Date of incorporation
- Income-tax PAN
- Nature of activities under taken (Please give NIC code – 1987)
- Brief particulars about the foreign investor
- Details of foreign inward remittances received by Applicant Company from date of
incorporation till date
Table A
Sl.No. |
Name of Remitter |
Total Amount
(INR) |
Date of Receipt |
Reported to RBI on* |
Delay if any |
|
|
|
|
|
|
|
Total |
|
|
|
|
* date of reporting to RBI and not AD |
Table B
Name of Investor |
Date of allotment of shares |
Number of shares allotted |
Amount for which shares allotted |
Date of reporting to RBI* |
Delay if any |
|
|
|
|
|
|
|
Total |
|
|
|
|
* date of reporting to RBI and not AD |
Table C
Sl. No. |
Name of Remitter |
Total Amount (INR) |
Date of Receipt |
Excess share application money |
Date of refund of share application money |
Amount in forex |
RBI approval letter and date |
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
Table D
Sl. No. |
Date |
Authorised Capital |
With effect from |
Date of Board meeting |
Date of filing with ROC |
|
|
|
|
|
|
|
|
|
|
|
|
A= B+C |
Authorised Capital
Please give supporting documents
Table A- Copies of FIRC with date stamp of receipt at RBI
Table B- Copies of FCGPR with date stamp of receipt at RBI
Table C – letter seeking refund/ allotment of shares- approval letter from RBI
A2 form
- Copies of Balance Sheet during the period of receipt of share application money
- and allotment of shares
- Nature of contravention and reasons for the contravention
Annex II- ECB
Details to be furnished along with application for compounding of
contravention relating to External Commercial Borrowing
- Name of the applicant
- Date of incorporation
- Income-tax PAN
- Nature of activities under taken (Please give NIC code – 1987)
- Brief particulars about the foreign lender
- Is the applicant an eligible borrower?
- Is the lender eligible lender?
- Is the lender an equity holder?
- What is the level of his holding at the time of loan agreement?
- Details of ECB
- Date of Loan agreement
- Amount in Foreign Currency and Indian Rupee
- Rate of interest
- Period of loan
- Repayment particulars
- Details of draw down
Date of draw down |
Amount in Foreign Currency |
Amount in INR |
|
|
|
- Details of LRN Number- application and receipt
- Details of ECB 2 returns submitted; Period of return: Date of submission
- Details of Utilization of ECB in Foreign Currency and Indian Rupee
- Nature of contravention and reasons for the contravention
- All supporting documents may be submitted
Annex II- ODI
Details to be furnished along with application for compounding of
contravention relating to Overseas Investment
- Name of the applicant
- Date of incorporation
- Income-tax PAN
- Nature of activities under taken (Please give NIC code – 1987)
- Name of Overseas entity
- Date of incorporation of overseas entity
- Nature of activities under taken by overseas entity
- Nature of entity- WOS/JV
- Details of remittance sent- Date of remittance; Amount in FCY and in INR
- Details of other financial Commitment
- Details of UIN applied and received
- Date of receipt of share certificate
- Approval of other regulators if required
- Details of APRs submitted: For the period ended; date of submission
- Nature of contravention and reasons for the contravention
- All supporting documents may be submitted
Annex II - Branch Office / Liaison Office
Details to be furnished along with application for compounding of
contravention relating to Branch/Liaison Office in India
- Name of the applicant
- Date of incorporation
- Income-tax PAN
- Nature of activities under taken (Please give NIC code – 1987)
- Date of approval for opening of Liaison Office/ Branch Office
- Validity period of the approval
- Income and expenditure of the LO/BO
- Dates of submission of Annual activity Certificates
- Nature of contravention and reasons for the contravention
- All supporting documents may be submitted
Annex III
ELECTRONIC CLEARING SERVICE (ECS)
MANDATE FORM
1. Name of the Party (Beneficiary) -
2. Particulars of the Bank Account -
Name of the Bank
Name of the Branch -
Address:
Telephone No:
9 Digit MICR Code Number:
(as appearing on the cheque issued by the Bank)
IFSC Code
Type of Account : SAVINGS / CURRENT
Account No. :
(as appearing on the cheque book issued by the Bank)
(Please attaché photocopy of a blank cheque for verification of the bank account
details)
I/We hereby declare that the particulars given above are correct and complete.
If the transaction is delayed or not effected at all for reasons of incomplete
or incorrect information, I/We would not hold the user institution responsible.
Signature of the Authorised Signatory
(Name of the Authorised Signatory)
Date :
Place :
Official Stamp
Appendix
List of Rules/ A.P. (DIR Series) Circulars consolidated
in the Master Circular Compounding of contraventions of FEMA, 1999
Rules Sl No |
Rules No. |
Date |
1 |
Foreign Exchange (Compounding Proceedings) Rules, 2000 |
May 3, 2000 |
2 |
Foreign Exchange (Compounding Proceedings) Rules, 2002 (Amendment) |
November 2, 2002 |
3 |
Foreign Exchange (Compounding Proceedings) Rules, 2004 (Amendment) |
September 13, 2004 |
4 |
Foreign Exchange (Compounding Proceedings) Rules, 2004 (Amendment) |
August 27, 2008 |
A.P.(DIR Series) Circular No. 56 dated June 28, 2010.
A.P.(DIR Series) Circular No. 57 dated December 13, 2011.
A.P.(DIR Series) Circular No. 11 dated July 31, 2012.
A.P.(DIR Series) Circular No. 76 dated January 17, 2013.
Press release no. 2012-2013/1215 dated January 18, 2013.
A.P.(DIR Series) Circular No. 20 dated August 12, 2013.
A.P.(DIR Series) Circular No.117 dated April 4, 2014
1 GSR 613(E) dated August 27, 2008
2 GSR 609 (E) dated September 13, 2004
3 GSR 443(E) dated November 2, 2002