RBI/2011-12/298
A.P. (DIR Series) Circular No.57
December 13, 2011
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. 56 dated June
28, 2010 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.
- As a measure of customer service and in order to facilitate the operational
convenience, it has been decided to delegate the powers to the Regional Offices
of the Reserve Bank of India mentioned below to compound the contraventions of
FEMA involving (i) delay in reporting of inward remittance, (ii) delay in filing
of form FC-GPR after allotment of shares and (iii) delay in issue of shares
beyond 180 days (viz. paragraphs 9(1)(A), 9(1)(B) and 8, respectively, of the
Schedule I to the Foreign Exchange Management (Transfer or Issue of Security by
a Person Resident Outside India) Regulations, 2000, notified vide
Notification
No. FEMA 20/2000-RB dated 3rd May 2000 and as amended from time to time:
a) Paragraphs 9 (1) (A) and 9 (1) (B) of Schedule I to FEMA 20/2000-RB dated May
3, 2000 -
Bhopal, Bhubaneshwar, Chandigarh, Guwahati, Jaipur, Jammu, Kanpur, Kochi, Patna
and Panaji for amount of contravention below Rupees One hundred lakh only (Rs.
1,00,00,000 /-).
b) Paragraphs 9 (1) (A), 9 (1) (B) and 8 of Schedule I to FEMA 20/2000-RB dated
May 3, 2000 -
Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi for
amount of contravention without any limit.
The Compounding Authorities attached to these Regional Offices of the Foreign
Exchange Department have been authorised to compound such cases at their
level(s) within the financial powers as per the Foreign Exchange (Compounding
Proceedings) Rules, 2000. Accordingly, all applications for compounding whether
received on the advice of the Regional Office concerned or suo-moto, relating to
the contraventions mentioned at (a) and (b) above and up to the amount of
contravention stated therein, may be submitted by the companies falling under
the jurisdiction of the aforesaid Regional Offices directly to the Regional
Office concerned, together with the prescribed fee and other relevant documents.
All other applications 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, as hitherto. The prescribed
fee of Rs. 5000/- (Rupees Five thousand only) may be paid by way of a demand
draft drawn in favour of "Reserve Bank of India" and payable at the Regional
Office where the application is being submitted and at Mumbai if the application
is submitted at CEFA, Mumbai.
- In terms of sub-rule (1) to Rule 8 of Foreign Exchange (Compounding
Proceedings) Rules, 2000, the Compounding Authority may call for any
information, record or any other documents relevant to the compounding
proceedings. It has been observed that there is no uniformity in submitting the
required details with supporting documents along with the compounding
application. This results in avoidable correspondence between Reserve Bank and
the applicant. It has, therefore been decided that along with the application in
the prescribed format, the applicant may also furnish the details as per the
enclosed Annexes relating to Foreign Direct Investment,
External Commercial Borrowings,
Overseas Direct Investment and
Branch Office / Liaison Office, as
applicable, along with an undertaking that they are not under investigation of
any agency such as DOE, CBI, etc., a copy of the Memorandum of Association and
latest audited balance sheet while applying for compounding of contraventions
under FEMA, 1999.
- 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,
(Dr. Sujatha Elizabeth Prasad)
Chief General Manager
Annex- 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
- Nature of activities under taken
- 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 |
|
|
|
|
Table C
In case there is excess share application money
| 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
Authorised Capital
| Sl. No. |
Date |
Authorised Capital |
With effect from |
Date of Board meeting |
Date of filing with ROC |
| |
|
|
|
|
|
| |
|
|
|
|
|
A= B+C
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- ECB
Details to be furnished along with application for compounding of
contravention relating to External Commercial Borrowing
| • Name of the applicant |
|
| • Date of incorporation |
|
| • Nature of activities under taken |
|
| • 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- ODI
Details to be furnished along with application for compounding of
contravention relating to Overseas Investment
- Name of the applicant
- Date of incorporation
- Nature of activities under taken
- 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- 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
- Date of approval for opening of Liaison Office/ Branch Office
- Validity period of the approval
- Nature of activities under taken
- 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