NIKHIL JATAV 1
GE-SEM-IV-ECONOMIC REGULATION
12-05-2020
Foreign Exchange Management (Permissible Capital Account Transactions) Regulation, 2000
Permissible Capital Account Transactions
CATs of a person may be classified under the following heads, namely: –
(A)transactions, specified in Schedule I, of a PRI.
(B)
transactions, specified in Schedule II, of a Person Resident Outside India.
Permissible CATs
SCHEDULE -I SCHEDULE –II
Classes of CATs Permissible to PRI Classes of CATs Permissible to PROI
a. Investment by a PRI in foreign securities. a. Investment in India by a Person Resident Outside India, that is to say,
b. Foreign currency loans raised in India and abroad by a PRI.
I. issue of security by a body corporate or an entity in India and investment therein by a Person Resident Outside India; and
c. Transfer of immovable property outside India by a PRI.
II. investment by way of contribution by a Person Resident Outside India to the capital of a firm or a proprietorship concern or an association of persons in India.
d. Guarantees issued by a PRI in favour of a Person Resident Outside India.
b. Acquisition and transfer of immovable property in India by a Person Resident Outside India.
e. Export, import and holding of currency/currency notes.
c. Guarantee by a Person Resident outside India in favour of, or on behalf of, a PRI.
f. Loans and overdrafts (borrowings) by a PRI from a Person Resident Outside India.
d. Import and export of currency/currency notes into/from India by a Person Resident Outside India.
g. Maintenance of foreign currency accounts in India and outside India by a PRI.
e. Deposits between a PRI and a Person resident outside India
h. Taking out of insurance policy by a PRI from an insurance company outside India.
f. Foreign currency accounts in India of a Person Resident Outside India.
i. Loans and overdrafts by a PRI to a Person Resident Outside India.
g. Remittance outside India of capital assets in India of a Person Resident Outside India.
j. Remittance outside India of capital assets of a PRI
k. Sale and purchase of foreign exchange
derivatives in India and abroad and
commodity derivatives abroad by a PRI.
NIKHIL JATAV 2 Export of Goods and Realisation of Foreign Exchange
Export of goods. Sec.7 Every exporter of goods shall –furnish to the RBI a declaration, containing true material particulars, including full export value or expected export value in contour where export is being made.
Realisation and repatriation of Forex Sec.8. Where any amount of Forex is due or has accrued to any PRI such person shall take all reasonable step to realise and repatriate to India such forex within such period and in such manner as may be specified by the RBI.
Exemption from realization and repatriation. Sec.9 a. Upto limit specified by RBI b. Up to the Limit of Forex A/C
c. Old Currency i.e. Foreign Exchange acquired or received before the 8th day of July, 1947
d. Gift or inheritance from a person referred above.
e. Forex Acquired from employment, gift etc.
f. Other Receipts
AUTHORISED PERSON ( Sec. 10, 11, 12 )
Grant and revocation of authorization. Sec.10 RBI may, authorize any person to be known as Authorised Person .
An authorization may be revoked by the RBI if the RBI is satisfied that
(a) it is in public interest so to do; or(b) Authorised Person has failed to comply with the condition or (C )Authorised Person has contravened any of the provisions of Act.
Declaration to Authorised Person before undertaking any transaction
Surrender of unused forex to Authorised person RBI to issue directions to AP (Sec.11) Direction by RBI to Authorised Person.
Penalty for Authorised Person in case of Contravention.—
Rs.10,000+Rs.2000(ED)
RBI may, cause an inspection to be made of any Authorised Person as may appear to it to be necessary or expedient.
NIKHIL JATAV 3
It shall be the duty of every authorized person, to produce to any officer , such books, accounts
Contravention and penalties. Sec 13 If any person make contravention
he shall, be liable to a penalty up to thrice the sum involved in such contravention where such amount is quantifiable, or
up to Rs.2 lacs, where the amount is not quantifiable, and where such contravention is a continuing one, further penalty Rs.5,000 for every day .
Enforcement of the orders of Adjudicating Authority (Sec.14)
If any person fails to make within a 90 days of notice for payment of such penalty is served on him, he shall be liable to civil imprisonment.
Arrest order shall be made only after giving ROoBH.
Arrest order may be issued immediately if defaulter is about to abscond.
Every person arrested in pursuance of a warrant of arrest shall be brought before the Adjudicating Authority within 24 hours of his arrest
Appointment of AA (Sec.16) CG may, appoint as many officers as it may think fit, as Adjudicating Authority(AA) for holding an inquiry after giving a ROBH to the person alleged to have committed contravention U/S 13.
Appeal to Special Director (Appeals) (Sec.17) CG shall, by notification, appoint one or more Special Director (Appeals) to hear appeals against the orders of Adjudicating Authority .
Any person aggrieved by an order made by AA, being an Assistant Director of enforcement or a Deputy Director of Enforcement, may prefer an appeal to Special Director (Appeals).
Every appeal shall be filed within 45 days from the date on which the copy of the order made by Adjudicating Authority.
Appeal to AT (Sec.19) CG or any person aggrieved by an order made by an AA., other than those referred to in sec. 17(1), or Special Director (Appeals), may prefer an appeal to AT.
Every appeal shall be filed within a period of 45 days. of 45 days may be extended in case of sufficient cause.
