Reduction of period of Realization and Repatriation of export of goods

Investment abroad by Individuals in India

A person resident in India being an Individual may acquire foreign security up to USD 2,00,000 in a financial year.

Acquisition of shares in Lieu of Professional services rendered:

A resident individual may apply  the Reserve bank of India for permission to acquire shares in a foreign entity as a consideration in lieu of the professional services rendered  to the foreign entity.

Reserve Bank of India, may grant permission after considering the following facgors

-Credentials and net worth of the Individual and the nature of his profession.

- the extent of his forex earnings / balances in his EEFC and RFC account.

- Financial and business track record of the foreign entity.

- Potential for forex inflow to the county.

- Other likely benefits to the country.

Purchase / Acquisition of foreign securities by a person resident India

A person being an resident individual in India, can acquire foreign securities through automatic route. Reg 22 of Transfer or issue of any Foreign Security Regulations, 2004.

An individual may acquire  foreign securities
- by way of gift from a person resident outside India.
- issued by Foreign company under cashless Employee Stock Exchange Option Scheme(ESOS).

A person resident in India, being an individual , who is an

- Employee or Director of Indian office or
- Employee of branch office of foreign company or
- Employee or Director of a subsidiary in India of foreign company or
- Employee or Director of Indian company in which foreign company holds note less than 51 percent of equity shares

may accept the shares offered by such foreign company under Employee Stock Option Plan (ESOP).

provided Shares issued under ESOP by the foreign company globally on uniform basis and remittance for acquire the should be through normal banking channels i.e through AD bank.

Transferable Development Rights

Transferable Development Rights (TDRs) means a certificates issued in respect of category of land acquired for public purpose either by central or state government in consideration of surrender of land by the owner without monetary compensation, which are transferable in part or whole.

The Reserve Bank of India may, in consultation with the central government, specify:-

• any class or classes of capital account transactions which are permissible
• the limit up to which foreign exchange shall be admissible for such transactions.

Foreign Investment in India by Foreigner, Non-resident Indian (NRI) and Foreign institutional investor (FII) is prohibited in "Trading in  Transferable Development Rights (TDRs)"

And also Indian parties are prohibited in for making an investment in foreign entity engaged in the business of real estate or Trading in  Transferable Development Rights (TDRs) without prior approval of Reserve Bank of India.

Accounts Under FEMA

1) Account :

Means, Savings, Current, Recurring, Fixed Deposit Opened And Maintained        under Non resident(External) Account Scheme(NRE Account), Foreign currency(Non- Resident)Account   Banks  Scheme (FCNR-B Account or Non-Resident(ordinary) Account Scheme (NRO Account)

2) EEFC Account :     

 Means the accounts referred to in the FEM(Foreign Currency Accounts  by A person resident in India) Regulations, 2000

3) Existing Account     :      Means an Account held on 31st March , 2002

4) Existing Account :     

 Means an Account Maintained on the date of  commencement of the regulations

5) FCNR Account   :    

i) Means an FCNR account opened and maintained in accordance with the FEM( Deposits) Regulations, 2000

ii) Shall have the same meaning as assigned to it in FEM(Deposits) Regulations, 2000

6) FCNR(B)Account  : 

Means a Foreign Currency Non-Resident (Bank) account referred to in clause (ii) of sub-regulation(1) of Regulation 5

7) Foreign Currency Account :

Means an account held or maintained in currency other than the currency of India or Nepal or Bhutan

8) NRNR Account     :

Means a Non-resident Non- repatrible account referred to in clause(iv) of sub-regulation(1) of Regulation 5

9) NRO Account    :

Means a Non- resident ordinary account referred to in clause (iii) of sub-regulation (1) of Regulation 5

10) NRSR Account   :

Means a Non -resident Special Rupee account referred to in clause (v) of sub - regulation(1) of Regulation 5

11) NRE Account :

  i) Means a non-resident Eternal account referred to in clause (i) of sub-regulation (1) of   Regulation 5

    ii) Means an NRE account opened and maintained in accordance with the FEM(Deposits) Regulations, 2000

12) RFC Account :

Means the accounts referred to in the FEM(Foreign Currency Accounts by a person Resident in India) Regulations, 2000

Forms under FEMA

The Following are the various forms used under FEMA

A-1          :Application for remittance of Foreign currency for Import payments.

A-2          : Application cum declaration for drawl of Foreign Exchange.

ARF        : Advance Reporting of Foreign Inward Remittance.

                Annual Return on foreign Assets and Liability

CDF        :Currency Declaration Form

DPX-1     : Application to be submitted by exporter after award of contract for exports on deferred payments.

ECB : External Commercial Borrowings

ECB- Annex 1 : Application for raising ECB under Approval Route

ECB - Annex 2 : Reporting of loan agreement details of ECB

ECB - Annex -3 : Reporting of actual transactions of ECB

EFC                 : Application for opening foreign currency account with a bank in India by exporter.

ETX                 :Application for permission to extend period of realization of exports proceeds.

FCGPR           : Report by Indian company issuing of shares or Convertible debentures

FCTRS             : Report by Indian company for transfer of shares from resident to Non-resident or Non-Resident to   Resident

FNC 1             : Application for opening branch office or Liaison office

ADR / GDR     : Return to be filled by an India company who has issued ADR or GDR

ODI Part I        : Application for direct investment in a JV / WOS

ODI Part II       : Reporting of remittances to JV / WOS

ODI Part III      : Annual Performance Report

ODI Part IV       : Report on closure / disinvestment / liquidation / winding up of JV / WOS

SDF                    : Declaration of Exports

SOFTEX             : Software Export declaration form

TC                       : Approvals, drawal, utilization and repayment of trade credit

XOS                     : Statement of particulars of export bills outstanding beyond the prescribed period.

Consolidated FDI policy 2013

Department of Industrial policy and promotion board has issued the Consolidated Foreign Direct Investment(FDI) policy for year 2013 on April 5th, 2013.

The following is the latest FDI secretarial caps, Reporting norms and procedure for the approval of the FDI

http://dipp.nic.in/English/Policies/FDI_Circular_01_2013.pdf