Master Circular on Compounding of Contraventions under FEMA, 1999
This Master Circular outlines the guidelines for compounding of contraventions under the Foreign Exchange Management Act (FEMA), 1999.
Compounding Powers: The Reserve Bank of India (RBI) and the Enforcement Directorate (ED) have been delegated powers to compound contraventions under FEMA.
Process of Compounding: The process involves submission of an application, scrutiny, and issue of a compounding order. The applicant must pay the compounded amount within the specified time.
Scope and Manner of Compounding: The RBI and ED can compound contraventions related to foreign exchange transactions, including those related to exports, imports, and investment.
Post-compounding Procedure: After compounding, the applicant must comply with the conditions specified in the compounding order and submit a compliance report.
Pre-requisites for Compounding: The applicant must submit a complete application, pay the compounded amount, and comply with the conditions specified in the compounding order.
Annex-I: The Foreign Exchange (Compounding Proceedings) Rules, 2000, as amended, provide the framework for compounding of contraventions under FEMA.
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Download: Master Circular on Compounding of Contraventions under FEMA, 1999