fema

Legal Framework: Foreign Exchange Management Act, 1999 (FEMA) came into force on 1st June 2000. The legal framework for administration of exchange control (i.e. current account transactions and capital account transactions) in India is provided by the FEMA. In terms of Section 5 of the FEMA, persons are free to buy or sell foreign exchange for any current account transaction except for those transactions on which the Central Government has imposed restrictions, vide its Notification No....

Introduction Every entity who has received Foreign Direct Investment and/or made Overseas Direct Investment in the previous reporting period(s) or current reporting period is required to file annually a return on its Foreign Liabilities and Assets (FLA) to Reserve Bank of India. The return is filed independently by the entity and shall be submitted by July 15, every year. The RBI has provided an e-portal for submission of FLA Return and entities are required to file their return only via RBI-FLAIR portal....

What is FLA Return or RBI Annual Return? It is a return filed by an eligible entity with the Reserve Bank of India, wherein foreign assets and liabilities held by the company are disclosed. Why are companies required to file FLA Return? The information collected from Indian resident companies/LLPs/Others on their foreign financial liabilities and assets position as at end-March of the previous financial year (FY) and end-March of the latest FY, is used in the compilation of India’s Balance of Payments (BoP) and International Investment Position (IIP)....

Introduction: All the Indian companies which have received FDI (foreign direct investment) and/or made overseas investment in the previous year(s) including the current year, means, who holds foreign Assets or Liabilities in their Balance Sheets are required to file Return on Foreign Liabilities Assets with Reserve Bank of India. The return shall be submitted on or before 15th July, every year. The Return is filled under A.P. (DIR Series) Circular No....