Master Circular on Compounding of Contraventions under FEMA, 1999
This circular outlines the guidelines for compounding of contraventions under the Foreign Exchange Management Act (FEMA), 1999.
Compounding Powers: The Reserve Bank of India (RBI) has delegated powers to compound contraventions to various authorities, including the Enforcement Directorate and the RBI itself.
Process of Compounding: The process involves submitting an application to the Compounding Authority, which will then issue a compounding order if the contravention is eligible for compounding.
Scope and Manner of Compounding: The circular outlines the scope and manner of compounding, including the procedure for compounding, payment of the compounded amount, and the contents of the compounding order.
Pre-requisites for Compounding: The circular lists the pre-requisites for the compounding process, including the submission of an application and the payment of the compounded amount.
Annexures: The circular includes two annexures: Annex-I, which outlines the Foreign Exchange (Compounding Proceedings) Rules, 2000, and Annex-II, which provides details on Foreign Direct Investment (FDI).
Format of Application Form: The circular includes a format for the application form to be submitted for compounding of contraventions.
Chat with the Master Circular:
Download: Master Circular on Compounding of Contraventions under FEMA, 1999