FEMA COMPLIANCES AND COMPOUNDING

FEMA COMPLIANCES AND COMPOUNDING

We at PKP provides complete services for compliances and compounding as prescribed under Foreign Exchange Management Act, 1999  as under:-.

  • Services related to Compliances:-
     
    • Transactions involving Foreign exchange inward (FDI) and outward (ODI)
    • Preparation of various statements, documents and applications as required for obtaining necessary approval from RBI/AD Banker.
       
  • Services related to Compounding

Compounding is a process whereby the applicant who has committed any violation of FEMA Act or Rules & Regulations made there under files voluntarily an application to the Competent Authority to compound its offences /violation by way of imposing financial penalties. However, compounding application cannot be filed for the contravention u/s 3A of the Act.  Such compounding application needs to be filed alongwith necessary detail/documents as under:-

  •  Application in the prescribed  format disclosing the contravention/default committed by the applicant  
  • Memorandum of Association or Charter documents of the applicant
  • Copy of latest audited Balance Sheet
  • Demand Draft toward application fee in favour of  “Reserve Bank of India” for Rs. 5,000/-
  • Other related documents concerning the default/contravention committed.

 

  • We at PKP can render following services:-
     
    • Consultancy and Advisory
    • Compliance of consequential contraventions, if any, committed by the applicant as may be required before filing of  compounding application to RBI.
    • Preparation of  necessary compounding application alongwith detail/documents required
    • Filing of application with  RBI
    • Compliance to the queries raised by RBI/AD Banker
    • Liaison with Competent Authorities