This document contains a list of contents for two volumes related to rules and regulations under the Foreign Exchange Management Act (FEMA) in India. It provides an overview of the various divisions, chapters, rules, regulations, and lists contained within the volumes. The document includes lists of notifications, master directions, circulars, prescribed forms, as well as the FEMA Act chapters and provisions. It also contains lists of the various rules and regulations organized by topic, date, and alphabetically.

1. (Set of 2 volumes)

2. I-7 CONTENTS
PAGE
CONTENTS
PAGE
Division Heads I-5-I-6
List of Basic Notifications I-19-I-26
List of Amending Notifications I-27-I-45
List of Notifications I-47-I-86
List of Master Directions I-87-I-88
List of FDI Circulars and Press Notes I-89-I-91
List of Prescribed Forms I-93-I-98
DIVISION ONE
FEMA GLOSSARY
1.1 Glossary of Important Definitions 1.3
DIVISION TWO
FOREIGN EXCHANGE MANAGEMENT ACT, 1999
CHAPTER I
PRELIMINARY
1. Short title, extent, application and commencement 2.3
2. Definitions 2.3
CHAPTER II
REGULATION AND MANAGEMENT OF FOREIGN EXCHANGE
3. Dealing in foreign exchange, etc. 2.6
4. Holding of foreign exchange, etc. 2.7
5. Current account transactions 2.7
6. Capital account transactions 2.7
7. Export of goods and services 2.10
8. Realisation and repatriation of foreign exchange 2.10
9. Exemption from realisation and repatriation in certain cases 2.10
I-7

3. CONTENTS I-8
PAGE
CHAPTER III
AUTHORISED PERSON
10. Authorised person 2.11
11. Reserve Bank’s powers to issue directions to authorised person 2.12
12. Power of Reserve Bank to inspect authorised person 2.12
CHAPTER IV
CONTRAVENTION AND PENALTIES
13. Penalties 2.13
14. Enforcement of the orders of Adjudicating Authority 2.14
14A. Power to recover arrears of penalty 2.15
15. Power to compound contravention 2.15
CHAPTER V
ADJUDICATION AND APPEAL
16. Appointment of Adjudicating Authority 2.15
17. Appeal to Special Director (Appeals) 2.16
18. Appellate Tribunal 2.17
19. Appeal to Appellate Tribunal 2.17
20. Composition of Appellate Tribunal 2.18
21. Qualifications for appointment of Special Director (Appeals) 2.18
22. [Omitted by the Finance Act, 2017, w.e.f. 26-5-2017] 2.19
23. Terms and conditions of service of Special Director (Appeals) 2.19
24. [Omitted by the Finance Act, 2017, w.e.f. 26-5-2017] 2.19
25. [Omitted by the Finance Act, 2017, w.e.f. 26-5-2017] 2.19
26. [Omitted by the Finance Act, 2017, w.e.f. 26-5-2017] 2.19
27. Staff of Special Director (Appeals) 2.20
28. Procedure and powers of Appellate Tribunal and Special
Director (Appeals) 2.20
29. [Omitted by the Finance Act, 2017, w.e.f. 26-5-2017] 2.21
30. [Omitted by the Finance Act, 2017, w.e.f. 26-5-2017] 2.21
31. [Omitted by the Finance Act, 2017, w.e.f. 26-5-2017] 2.21
32. Right of appellant to take assistance of legal practitioner or
chartered accountant and of Government, to appoint
presenting officers 2.21
33. Officers and employees, etc., to be public servant 2.21
34. Civil court not to have jurisdiction 2.21
35. Appeal to High Court 2.22
CHAPTER VI
DIRECTORATE OF ENFORCEMENT
36. Directorate of Enforcement 2.22
37. Power of search, seizure, etc. 2.22

4. I-9 CONTENTS
PAGE
37A. Special provisions relating to assets held outside India in contravention of section 4 2.23
38. Empowering other officers 2.23
CHAPTER VII
MISCELLANEOUS
39. Presumption as to documents in certain cases 2.24
40. Suspension of operation of this Act 2.24
41. Power of Central Government to give directions 2.25
42. Contravention by companies 2.25
43. Death or insolvency in certain cases 2.25
44. Bar of legal proceedings 2.25
45. Removal of difficulties 2.25
46. Power to make rules 2.26
47. Power to make regulations 2.27
48. Rules and regulations to be laid before Parliament 2.28
49. Repeal and saving 2.28
DIVISION THREE
RULES & REGULATIONS UNDER FEMA
LIST OF RULES AND REGULATIONS
3.1 Foreign Exchange Management (Encashment of Draft, Cheque,
Instrument and Payment of Interest) Rules, 2000 3.3
3.2 Foreign Exchange (Authentication of Documents) Rules, 2000 3.5
3.3 Foreign Exchange Management (Current Account Transactions)
Rules, 2000 3.6
3.4 Foreign Exchange Management (Adjudication Proceedings and Appeal)
Rules, 2000 3.11
3.5 Foreign Exchange (Compounding Proceedings) Rules, 2000 3.18
3.6 Foreign Exchange Management (Permissible Capital Account
Transactions) Regulations, 2000 3.22
3.7 Foreign Exchange Management (Issue of Security in India by a Branch,
Office or Agency of a Person Resident outside India) Regulations, 2000 3.26
3.8 Foreign Exchange Management (Borrowing and Lending) Regulations,
2018 3.27
3.9 Foreign Exchange Management (Deposit) Regulations, 2016 3.37
3.10 Foreign Exchange Management (Export and Import of Currency)
Regulations, 2015 3.55
3.11 Foreign Exchange Management (Acquisition and Transfer of Immovable
Property outside India) Regulations, 2015 3.58
3.12 Foreign Exchange Management (Guarantees) Regulations, 2000 3.60
3.13 Foreign Exchange Management (Realisation, Repatriation and Surrender
of Foreign Exchange) Regulations, 2015 3.65
3.14 Foreign Exchange Management (Foreign Currency Accounts by a Person
Resident in India) Regulations, 2015 3.68

5. CONTENTS I-10
PAGE
3.15 Foreign Exchange Management (Possession and Retention of Foreign
Currency) Regulations, 2015 3.79
3.16 Foreign Exchange Management (Insurance) Regulations, 2015 3.81
3.17 Foreign Exchange Management (Remittance of Assets) Regulations, 2016 3.83
3.18 Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2016 3.87
3.19 Foreign Exchange Management (Non-debt Instruments) Rules, 2019 3.91
3.20 Foreign Exchange Management (Debt Instruments) Regulations, 2019 3.148
3.21 Foreign Exchange Management (Mode of Payment and Reporting of Non-debt
Instruments) Regulations, 2019 3.154
3.22 Foreign Exchange Management (Establishment in India of a Branch Office or a
Liaison Office or a Project Office or any other Place of Business) Regulations, 2016 3.161
3.23 Foreign Exchange Management (Export of Goods and Services) Regulations, 2015 3.172
3.24 Foreign Exchange Management (Foreign Exchange Derivative Contracts)
Regulations, 2000 3.179
3.25 Currency Futures (Reserve Bank) Directions, 2008 3.190
3.26 Foreign Exchange Management (Transfer or Issue of any Foreign Security)
Regulations, 2004 3.193
3.27 Appellate Tribunal for Foreign Exchange (Recruitment, Salary & Allowances &
Other Conditions of Service of Chairperson & Members) Rules, 2000 3.258
3.28 Foreign Exchange Management (Offshore Banking Unit) Regulations, 2002 3.261
3.29 Foreign Exchange Management [Withdrawal of General Permission
to Overseas Corporate Bodies (OCBs)] Regulations, 2003 3.263
3.30 Exchange Traded Currency Options (Reserve Bank) Directions, 2010 3.267
3.31 Foreign Exchange Management (Crystallization of Inoperative Foreign Currency
Deposits) Regulations, 2014 3.271
3.32 Foreign Exchange Management (International Financial Services Centre)
Regulations, 2015 3.273
3.33 Foreign Exchange Management (Regularization of Assets held Abroad by a Person
Resident in India) Regulations, 2015 3.275
3.34 Foreign Exchange Management (Cross Border Merger) Regulations, 2018 3.276
3.35 Hedging of Commodity Price Risk and Freight Risk in Overseas Markets (Reserve Bank)
Directions, 2018 3.280
ALPHABETICAL LIST OF RULES & REGULATIONS
u Appellate Tribunal for Foreign Exchange (Recruitment, Salary & Allowances &
Other Conditions of Service of Chairperson & Members) Rules, 2000 3.258
u Currency Futures (Reserve Bank) Directions, 2008 3.190
u Exchange Traded Currency Options (Reserve Bank) Directions, 2010 3.267
u Foreign Exchange (Authentication of Documents) Rules, 2000 3.5
u Foreign Exchange (Compounding Proceedings) Rules, 2000 3.18
u Foreign Exchange Management (Acquisition and Transfer of Immovable Property
outside India) Regulations, 2015 3.58
u Foreign Exchange Management (Adjudication Proceedings and Appeal)
Rules, 2000 3.11
u Foreign Exchange Management (Borrowing and Lending) Regulations, 2018 3.27

6. I-11 CONTENTS
PAGE
u Foreign Exchange Management (Cross Border Merger) Regulations, 2018 3.276
u Foreign Exchange Management (Crystallization of Inoperative Foreign Currency
Deposits) Regulations, 2014 3.271
u Foreign Exchange Management (Current Account Transactions) Rules, 2000 3.6
u Foreign Exchange Management (Debt Instruments) Regulations, 2019 3.148
u Foreign Exchange Management (Deposit) Regulations, 2016 3.37
u Foreign Exchange Management (Encashment of Draft, Cheque, Instrument and
Payment of Interest) Rules, 2000 3.3
u Foreign Exchange Management (Establishment in India of a Branch Office or a Liaison
Office or a Project Office or any other Place of Business) Regulations, 2016 3.161
u Foreign Exchange Management (Export and Import of Currency) Regulations, 2015 3.55
u Foreign Exchange Management (Export of Goods and Services) Regulations, 2015 3.172
u Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in
India) Regulations, 2015 3.68
u Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000 3.179
u Foreign Exchange Management (Guarantees) Regulations, 2000 3.60
u Foreign Exchange Management (Insurance) Regulations, 2015 3.81
u Foreign Exchange Management (International Financial Services Centre) Regulations, 2015 3.271
u Foreign Exchange Management (Issue of Security in India by a Branch, Office or Agency
of a Person Resident outside India) Regulations, 2000 3.26
u Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2016 3.87
u Foreign Exchange Management (Mode of Payment and Reporting of Non-debt
Instruments) Regulations, 2019 3.154
u Foreign Exchange Management (Non-debt Instruments) Rules, 2019 3.91
u Foreign Exchange Management (Offshore Banking Unit) Regulations, 2002 3.261
u Foreign Exchange Management (Permissible Capital Account Transactions) Regulations,
2000 3.22
u Foreign Exchange Management (Possession and Retention of Foreign Currency)
Regulations, 2015 3.79
u Foreign Exchange Management (Realisation, Repatriation and Surrender of Foreign
Exchange) Regulations, 2015 3.65
u Foreign Exchange Management (Regularization of Assets held Abroad by a Person
Resident in India) Regulations, 2015 3.275
u Foreign Exchange Management (Remittance of Assets) Regulations, 2016 3.83
u Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004 3.193
u Foreign Exchange Management [Withdrawal of General Permission to Overseas Corporate
Bodies (OCBs)] Regulations, 2003 3.263
u Hedging of Commodity Price Risk and Freight Risk in Overseas Markets (Reserve Bank)
Directions, 2018 3.280
CHRONOLOGICAL LIST OF RULES & REGULATIONS
CENTRAL GOVERNMENT
u GSR 379(E), dated 3-5-2000 - Foreign Exchange Management (Encashment of Draft,
Cheque, Instrument and Payment of Interest) Rules, 2000 3.3

7. CONTENTS I-12
PAGE
u GSR 380(E), dated 3-5-2000 - Foreign Exchange (Authentication of Documents)
Rules, 2000 3.5
u GSR 381(E), dated 3-5-2000 - Foreign Exchange Management (Current Account
Transactions) Rules, 2000 3.6
u GSR 382(E), dated 3-5-2000 - Foreign Exchange Management (Adjudication Proceedings
and Appeal) Rules, 2000 3.11
u GSR 383(E), dated 3-5-2000 - Foreign Exchange (Compounding Proceedings) Rules, 2000 3.18
u GSR 677(E), dated 28-8-2000 - Appellate Tribunal for Foreign Exchange (Recruitment,
Salary and Allowances and other Conditions of Service of Chairperson and Members)
Rules, 2000 3.258
u S.O. No. 3732(E), dated 17-10-2019 - Foreign Exchange Management (Non-debt
Instruments) Rules, 2019 3.91
u GSR 796(E), dated 17-10-2019 - Foreign Exchange Management (Debt Instruments)
Regulations, 2019 3.148
RBI
u FEMA 1/2000-RB, dated 3-5-2000 - Foreign Exchange Management (Permissible
Capital Account Transactions) Regulations, 2000 3.22
u FEMA 2/2000-RB, dated 3-5-2000 - Foreign Exchange Management (Issue of Security in
India by a Branch, Office or Agency of a Person Resident outside India) Regulations, 2000 3.26
u FEMA 3(R)/2018-RB, dated 17-12-2018 - Foreign Exchange Management (Borrowing and
Lending) Regulations, 2018 3.27
u FEMA 5(R)/2016-RB, dated 1-4-2016 - Foreign Exchange Management (Deposit)
Regulations, 2016 3.37
u FEMA 6(R)/2015-RB, dated 29-12-2015 - Foreign Exchange Management (Export and Import
of Currency) Regulations, 2015 3.55
u FEMA 7(R)/2015-RB, dated 21-1-2016 - Foreign Exchange Management (Acquisition and
Transfer of Immovable Property outside India) Regulations, 2015 3.58
u FEMA 8/2000-RB, dated 3-5-2000 - Foreign Exchange Management (Guarantees)
Regulations, 2000 3.60
u FEMA 9(R)/2015-RB, dated 29-12-2015 - Foreign Exchange Management (Realisation,
Repatriation and Surrender of Foreign Exchange) Regulations, 2015 3.65
u FEMA 10(R)/2015-RB, dated 21-1-2016 - Foreign Exchange Management (Foreign Currency
Accounts by a Person Resident in India) Regulations, 2015 3.68
u FEMA 10A/2014-RB, dated 21-3-2014 - Foreign Exchange Management (Crystallization of
Inoperative Foreign Currency Deposits) Regulations, 2014 3.271
u FEMA 11(R)/2015-RB, dated 29-12-2015 - Foreign Exchange Management (Possession and
Retention of Foreign Currency) Regulations, 2015 3.79
u FEMA 12(R)/2015-RB, dated 29-12-2015 - Foreign Exchange Management (Insurance)
Regulations, 2015 3.81
u FEMA 13(R)/2016-RB, dated 1-4-2016 - Foreign Exchange Management (Remittance of
Assets) Regulations, 2016 3.83
u FEMA 14(R)/2016-RB, dated 2-5-2016 - Foreign Exchange Management (Manner of Receipt
and Payment) Regulations, 2016 3.87
u FEMA 22(R)/2016-RB, dated 31-3-2016 - Foreign Exchange Management (Establishment in
India of a Branch Office or a Liaison Office or a Project Office or any other Place of Business)
Regulations, 2016 3.161

8. I-13 CONTENTS
PAGE
u FEMA 23(R)/2015-RB, dated 12-1-2016 - Foreign Exchange Management (Export of Goods
and Services) Regulations, 2015 3.172
u FEMA 25/2000-RB, dated 3-5-2000 - Foreign Exchange Management (Foreign Exchange
Derivative Contracts) Regulations, 2000 3.179
u FEMA 120/2004-RB, dated 7-7-2004 - Foreign Exchange Management (Transfer or Issue
of any Foreign Security) Regulations, 2004 3.193
u FEMA 71/2002-RB, dated 7-9-2002 - Foreign Exchange Management (Offshore Banking
Unit) Regulations, 2002 3.261
u FEMA 101/2003-RB, dated 3-10-2003 - Foreign Exchange Management [Withdrawal
of General Permission to Overseas Corporate Bodies (OCBs)] Regulations, 2003 3.263
u FEMA 339/2015-RB, dated 2-3-2015 - Foreign Exchange Management (International
Financial Services Centre) Regulations, 2015 3.273
u FEMA 348/2015-RB, dated 25-9-2015 - Foreign Exchange Management (Regularization
of Assets held Abroad by a Person Resident in India) Regulations, 2015 3.275
u FEMA 389/2018-RB, dated 20-3-2018 - Foreign Exchange Management (Cross Border
Merger) Regulations, 2018 3.276
u FEMA 395/2019-RB, dated 17-10-2019 - Foreign Exchange Management (Mode of
Payment and Reporting of Non-debt Instruments) Regulations, 2019 3.154
u FED 1/DG(SG)-2008, dated 6-8-2008 - Currency Futures (Reserve Bank) Directions, 2008 3.190
u FED 01/ED(HRK)-2010, dated 30-7-2010 - Exchange Traded Currency Options
(Reserve Bank) Directions, 2010 3.267
DIVISION FOUR
NOTIFICATIONS UNDER FEMA
4.1 Notification under section 1(4) of FEMA/Enforcement of Amendments to provisions
of FEMA 4.3
4.2 Notification under section 2(h) of FEMA 4.4
4.3 Notification under section 2(za) of FEMA 4.5
4.4 Notifications under section 3 of FEMA 4.6
4.5 Notification under section 6 of FEMA 4.9
4.6 Orders under section 16 of FEMA 4.10
4.7 Notification under section 17 of FEMA 4.12
4.8 Notification under section 18 of FEMA 4.13
4.9 Notification under section 19 of FEMA 4.14
4.10 Notifications under section 36 of FEMA 4.15
4.11 Notifications under section 37A of FEMA 4.17
4.12 Notification under section 38 of FEMA 4.18
4.13 Notification under section 40 of RBI Act 4.19
4.14 Notification under section 47 of FEMA 4.20
4.15 Notification under section 50 of FEMA 4.21
4.16 Removal of Difficulties Order 4.23

9. CONTENTS I-14
PAGE
DIVISION FIVE
MASTER DIRECTIONS
5.1 Master Direction on Risk Management and Inter-Bank Dealings 5.3
5.2 Master Direction on Opening and Maintenance of Rupee/Foreign Currency Vostro
Accounts of Non-resident Exchange Houses 5.57
5.3 Master Direction on Money Changing Activities 5.67
5.4 Master Direction on Compounding of Contraventions under FEMA, 1999 5.85
5.5 Master Direction on External Commercial Borrowings, Trade Credits and structured
obligations 5.95
5.6 Master Direction on Borrowing and Lending transactions in Indian Rupee between
Persons Resident in India and Non-Resident Indians/Persons of Indian Origin 5.113
5.7 Master Direction on Liberalised Remittance Scheme (LRS) 5.120
5.8 Master Direction on other Remittance Facilities 5.134
5.9 Master Direction on Insurance 5.158
5.10 Master Direction on Establishment of Branch Office (BO)/ Liaison Office (LO)/ Project
Office (PO) or any other place of business in India by foreign entities 5.165
5.11 Master Direction on Foreign Investment in India 5.179
5.12 Master Direction on Acquisition and Transfer of Immovable Property under Foreign
Exchange Management Act, 1999 5.215
5.13 Master Direction on Remittance of Assets 5.226
5.14 Master Direction on Deposits and Accounts 5.230
5.15 Master Direction on Direct Investment by Residents in Joint Venture (JV)/Wholly
Owned Subsidiary (WOS) Abroad 5.248
5.16 Master Direction on Export of Goods and Services 5.272
5.17 Master Direction on Import of Goods and Services 5.302
5.18 Master Direction on Reporting under Foreign Exchange Management Act, 1999 5.323
5.19 Master Direction on Miscellaneous 5.417
5.20 Master Direction on Money Transfer Service Scheme (MTSS) 5.423
DIVISION SIX
MEMORANDUM OF INSTRUCTIONS
u PEM : Memorandum of Instructions on Project Exports and Service Exports 6.3
u ACM : Memorandum of procedure for channelling transactions through
Asian Clearing Union (ACU) 6.68
u GIM : Revised Instructions under GIM 6.89
u LIM : Revised Instructions under LIM 6.94
DIVISION SEVEN
FOREIGN CONTRIBUTIONS
7.1 Foreign Contribution (Regulation) Act, 2010 7.3
7.2 Foreign Contribution (Regulation) Rules, 2011 7.24
7.3 Foreign Contribution (Acceptance or Retention of Gifts or Presentations) Rules, 2012 7.63

10. I-15 CONTENTS
PAGE
7.4 Notifications issued under Foreign Contribution (Regulation) Act, 2010 7.65
7.5 Guidelines issued under section 36(1)(a) of the Banking Regulation Act, 1949 -
Implementation of the Provisions of Foreign Contribution (Regulation) Act, 2010 7.74
7.6 Notified agencies u/s 2(1)(e) of Foreign Contribution (Regulation) Act, 1976 7.80
DIVISION EIGHT
PREVENTION OF MONEY LAUNDERING
8.1 Prevention of Money Laundering Act, 2002 8.3
8.2 Notifications 8.57
8.3 Prevention of Money-Laundering (the Manner of Forwarding a Copy of the Order of
ProvisionalAttachmentofPropertyalongwiththeMaterial,andCopyoftheReasonsalong
with the Material in Respect of Survey, to the Adjudicating Authority and its Period of
Retention) Rules, 2005 8.73
8.4 Prevention of Money-Laundering (Receipt and Management of Confiscated Properties)
Rules, 2005 8.78
8.5 Prevention of Money-Laundering (Maintenance of Records) Rules, 2005 8.81
8.6 Prevention of Money-Laundering (Forms, Search and Seizure or Freezing and the
Manner of Forwarding the Reasons and Material to the Adjudicating Authority,
Impounding and Custody of Records and the Period of Retention) Rules, 2005 8.112
8.7 Prevention of Money-Laundering (the Forms and the Manner of Forwarding a Copy of
Order of Arrest of a Person along with the Material to the Adjudicating Authority and
its Period of Retention) Rules, 2005 8.123
8.8 Prevention of Money-Laundering (the Manner of Forwarding a Copy of the Order of
Retention of Seized Property along with the Material to the Adjudicating Authority and the
Period of its Retention) Rules, 2005 8.128
8.9 Prevention of Money-Laundering (Manner of Receiving the Records Authenticated
outside India) Rules, 2005 8.132
8.10 Prevention of Money-Laundering (Appeal) Rules, 2005 8.133
8.11 Adjudicating Authority (Procedure) Regulations, 2013 8.136
8.12 Prevention of Money-Laundering (Appointment and Conditions of Service of Chairperson
and Members of Appellate Tribunal) Rules, 2007 8.150
8.13 Prevention of Money-Laundering (Appointment and Conditions of Service of Chairperson
and Members of Adjudicating Authorities) Rules, 2007 8.156
8.14 Prevention of Money-Laundering (Issuance of Provisional Attachment Order) Rules, 2013 8.159
8.15 Prevention of Money-Laundering (Taking Possession of Attached or Frozen Properties
Confirmed by the Adjudicating Authority) Rules, 2013 8.161
8.16 Prevention of Money-Laundering (Restoration of Property) Rules, 2016 8.167
8.17 Know Your Customer (KYC) Directions, 2016 8.169
DIVISION NINE
EURO ISSUE AND ISSUE OF FOREIGN CURRENCY CONVERTIBLE
BONDS/ORDINARY SHARES THROUGH DEPOSITORY RECEIPT
MECHANISM/ISSUE OF FOREIGN CURRENCY EXCHANGE BONDS
9.1 Euro Issue 9.3

11. CONTENTS I-16
PAGE
9.2 Issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through
Depositary Receipt Mechanism) Scheme, 1993 9.33
9.3 Issue of Foreign Currency Exchangeable Bonds Scheme, 2008 9.49
9.4 Depository Receipts Scheme, 2014 9.52
9.5 Companies (Issue of Global Depository Receipts) Rules, 2014 9.56
DIVISION TEN
ALLIED ACTS/RULES AND GUIDELINES
10.1 Foreign Trade (Development and Regulation) Act, 1992 10.3
10.2 Notification under section 9A of the Foreign Trade (Development & Regulation) Act,
1992 10.18
10.3 Foreign Trade (Regulation) Rules, 1993 10.20
10.4 Foreign Trade (Exemption from Application of Rules in certain Cases) Order, 1993 10.28
10.5 Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 10.33
10.6 Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 10.40
10.7 Smugglers and Foreign Exchange Manipulators (Appellate Tribunal for
Forfeited Property) Rules, 1977 10.49
10.8 Appellate Tribunal for Forfeited Property (Procedure) Rules, 1986 10.58
10.9 Appellate Tribunal for Forfeited Property (Fees) Rules, 1987 10.66
10.10 Smugglers and Foreign Exchange Manipulators (Receipt, Management and Disposal
of Forfeited Property) Rules, 2006 10.67
10.11 Safeguard Measures (Quantitative Restrictions) Rules, 2012 10.73
DIVISION ELEVEN
FOREIGN DIRECT INVESTMENT POLICY
11.1 Consolidated Foreign Direct Investment Policy 11.3
11.2 Circulars issued in 2009-19 11.90
DIVISION TWELVE
TRIBUNAL, APPELLATE TRIBUNAL AND OTHER AUTHORITIES
12.1 Relevant sections of Finance Act, 2017 12.3
12.2 Tribunal, Appellate Tribunal and Other Authorities (Qualifications, Experience and
Other Conditions of Service of Members) Rules, 2017 12.8
DIVISION THIRTEEN
FEMA READY RECKONER
ACRONYMS USED IN FEMA 13.vii*
CHAPTER 1 : FEMA - Overview 13.3*
CHAPTER 2 : Authorised Person under FEMA 13.10*
CHAPTER 3 : Accounts in India by person resident out of India 13.17*
CHAPTER 4 : Accounts of Indian residents in Foreign Currency 13.29*
*See Volume 2.

12. I-17 CONTENTS
PAGE
CHAPTER 5 : Receipt and payment in foreign exchange 13.40*
CHAPTER 6 : Realisation, repatriation and surrender of foreign exchange 13.45*
CHAPTER 7 : Money Changing Activities 13.48*
CHAPTER 8 : Money Transfer Service Scheme (MTSS) 13.60*
CHAPTER 9 : Possession and Retention of Foreign Currency 13.65*
CHAPTER 10 : Export and Import of Currency or Currency Notes 13.67*
CHAPTER 11 : Remittances on current account 13.70*
CHAPTER 12 : Liberalised Remittance Scheme (LRS) 13.85*
CHAPTER 13 : Export of Goods and Services 13.93*
CHAPTER 14 : Import of Goods and Services 13.132*
CHAPTER 15 : Project exports and Service Exports 13.153*
CHAPTER 16 : Foreign exchange rates 13.155*
CHAPTER 17 : Overview of Capital account transactions 13.162*
CHAPTER 18 : Foreign Investment in India 13.166*
CHAPTER 19 : FDI in company 13.171*
CHAPTER 20 : Sector wise FDI Policy at a glance 13.182*
CHAPTER 21 : FDI - Downstream investment 13.190*
CHAPTER 22 : FDI through rights, bonus, sweat equity or merger/amalgamation 13.196*
CHAPTER 23 : FDI - Transfer of securities 13.200*
CHAPTER 24 : FDI in LLP 13.207*
CHAPTER 25 : FDI in GDR/ADR 13.210*
CHAPTER 26 : Investment by NRI or OCI 13.213*
CHAPTER 27 : FDI in startup company 13.227*
CHAPTER 28 : Investment by Foreign Portfolio Investor 13.230*
CHAPTER 29 : FDI in investment vehicle 13.236*
CHAPTER 30 : FDI by FVCI 13.239*
CHAPTER 31 : FDI - Investment in securities by Funds, Foreign Central Bank etc. 13.242*
CHAPTER 32 : Investment by Indian entity in JV/WOS abroad 13.244*
CHAPTER 33 : Guarantees 13.273*
CHAPTER 34 : Insurance 13.278*
CHAPTER 35 : Borrowing and Lending in foreign currency 13.286*
CHAPTER 36 : Borrowing and lending in Indian Rupees 13.291*
CHAPTER 37 : Foreign Investment in Debt Instruments 13.298*
CHAPTER 38 : External Commercial Borrowings 13.308*
CHAPTER 39 : Trade Credit (TC) and Structured Obligations 13.324*
CHAPTER 40 : Acquisition and transfer of property in India 13.331*
CHAPTER 41 : Acquisition and Transfer of Immovable Property out of India 13.337*
*See Volume 2.

13. CONTENTS I-18
PAGE
*See Volume 2.
CHAPTER 42 : Remittance of Assets 13.339*
CHAPTER 43 : Branch/LO/Project Office in India by foreign entities 13.343*
CHAPTER 44 : Indian Depository Receipts 13.359*
CHAPTER 45 : Risk Management and Inter-Bank Dealings 13.366*
CHAPTER 46 : Vostro Account of Non-Resident Exchange Houses 13.368*
CHAPTER 47 : Industrial Policy of Government of India 13.371*
CHAPTER 48 : Enforcement of FEMA 13.377*
CHAPTER 49 : Penalties under FEMA 13.380*
CHAPTER 50 : Appeals under FEMA 13.386*
CHAPTER 51 : Compounding of Contraventions under FEMA 13.390*
CHAPTER 52 : Prevention of Money Laundering Act 13.401*
CHAPTER 53 : Foreign Contribution (Regulation) Act (FCRA) 13.433*
CHAPTER 54 : COFEPOSA, 1974 13.451*
SUBJECT INDEX 13.465*
DIVISION FOURTEEN
FEMA CASE LAWS DIGEST
14.1 FEMA 1999 14.3*
14.2 Foreign Contribution (Regulation) Act, 1976 14.17*
14.3 Foreign Exchange Regulation Act, 1973 14.19*
DIVISION FIFTEEN
RBI’s CIRCULARS & CLARIFICATIONS
15.1 List of RBI’s Circulars & Clarifications 15.3*
15.2 RBI’s Circulars & Clarifications 15.149*
15.3 Other Circulars & Clarifications 15.206*
APPENDIX I
u Relevant Provisions of Exchange Control Manual A1-A101*
APPENDIX II
u Foreign Exchange Regulation Act, 1973 A103-A135*
APPENDIX III
u FEDAI Rules A137-A155*
APPENDIX IV
u Asian Clearing Union (Procedure) Rules A157-A161*
SUBJECT INDEX i-l

14. 3.20
FOREIGN EXCHANGE MANAGEMENT (DEBT INSTRU-
MENTS) REGULATIONS, 2019*
Notification No. G.S.R. 796(E), dated 17-10-2019.—In exercise of the powers conferred by clause
(a) of sub-section (2) of section 6 and section 47 of the Foreign Exchange Management Act, 1999
(42 of 1999), and in supersession of the Foreign Exchange Management (Transfer or Issue of Secu-
rity by a Person Resident outside India) Regulations, 2017, the Reserve Bank makes the following
regulations to regulate investment in India by a Person Resident outside India, namely:—
CHAPTER I
PRELIMINARY
Short title and commencement.
1. (1) These Regulations may be called the Foreign Exchange Management (Debt Instruments)
Regulations, 2019.
(2) They shall come into force from the date of their publication in the Official Gazette.
Definitions.
2. In these Regulations, unless the context otherwise requires :—
(a) “Act” means the Foreign Exchange Management Act, 1999 (42 of 1999);
(b) “asset reconstruction company” means a company registered with the Reserve Bank under
section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of
Security Interest Act, 2002 (54 of 2002);
(c) “authorised dealer” includes a person authorised under sub-section (1) of section 10 of the
Act;
(d) “debt instruments” means the instruments listed under Schedule 1 of the regulations;
(e) “foreign central bank” means an institution or organisation or body corporate established in
a country outside India and entrusted with the responsibility of carrying out central bank
functions under the law for the time being in force in that country;
(f) “FCNR (B) account” means a Foreign Currency Non-Resident (Bank) account maintained in
accordance with the Foreign Exchange Management (Deposit) Regulations, 2016;
*superseded Foreign Exchange Management (Transfer oR Issue of Security by a Person Resident
outside India) Regulations, 2017.
3.148
Sample Chapter

15. (g) “FPI” or “Foreign Portfolio Investor” means a person registered in accordance with the provi-
sions of the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations,
2014;
(h) “Indian company” means a company incorporated in India;
(i) “Indian entity” shall mean an Indian company or a LLP;
(j) “investment” means to subscribe, acquire, hold or transfer any debt instrument or unit issued
by a person resident in India;
(k) “investment on repatriation basis” means an investment, sale or maturity proceeds of which
are net of taxes, eligible to be repatriated out of India, and the expression “investment on
non-repatriation basis”, shall be construed accordingly;
(l) “mutual fund” means an entity governed by the Securities and Exchange Board of India
(Mutual Funds) Regulations, 1996;
(m) “LLP” means a limited liability partnership formed and registered under the Limited Liability
Partnership Act, 2008 (6 of 2009);
(n) “listed Indian company” means an Indian company which has any of its equity instruments or
debt instruments listed on a recognised stock exchange in India and the expression “unlisted
Indian company” shall be construed accordingly;
(o) “municipal bonds” mean debt instruments issued by municipalities constituted under Article
243Q of the Constitution of India;
(p) “NRI” or “Non-Resident Indian” means an individual resident outside India who is a citizen of
India;
(q) “OCI” or “Overseas Citizen of India” means an individual resident outside India who is
registered as an Overseas Citizen of India Cardholder under section 7(A) of the Citizenship
Act, 1955 (57 of 1955);
(r) “unit” means a beneficial interest of an investor in a mutual fund;
(s) “venture capital fund” means a fund established in the form of a trust, a company including a
body corporate and registered under the Securities and Exchange Board of India (Alternative
Investment Funds) Regulations, 2012.
(2) The words and expressions used but not defined in these regulations shall have the same mean-
ings respectively assigned to them in the Act, rules and regulations.
CHAPTER II
GENERAL CONDITIONS APPLICABLE TO ALL INVESTORS
Restriction on investment by a person resident outside India.
3. Save as otherwise provided in the Act, or rules or regulations made thereunder, no person
resident outside India shall make any investment in India:
Provided that an investment made in accordance with the Act or the rules or the regulations framed
thereunder and held on the date of commencement of these Regulations, shall be deemed to have
been made under these Regulations and shall accordingly be governed by these Regulations:
Provided further that the Reserve Bank may, on an application made to it and for sufficient reasons,
permit a person resident outside India to make any investment in India subject to such conditions
as may be considered necessary.
3.149 Restriction on investment by a person resident outside India Reg. 3

16. Restriction on receiving investment
4. Save as otherwise provided in the Act or rules or regulations made thereunder, an Indian entity
or a mutual fund, or a venture capital fund or a firm or an association of persons or a proprietary
concern shall not receive any investment in India from a person resident outside India or record
such investment in its books :
Provided that the Reserve Bank may, on an application made to it and for sufficient reasons, permit
an Indian entity or a mutual fund, or a venture capital fund or a Firm or an Association of Persons
or a proprietary concern to receive any investment in India from a person resident outside India
or to record such investment subject to such conditions as may be considered necessary.
Permission for making investment by a person resident outside India
5. Unless otherwise specified in these regulations or the relevant Schedules, any investment made
by a person resident outside India shall be subject to the entry routes, the investment limits and
the attendant conditionalities for such investment as laid down in these regulations.
(1) A person resident outside India, permitted for the purpose by the Reserve Bank in consultation
with Central Government, may purchase or sell debt instruments in the manner and subject to the
terms and conditions specified in Schedule 1.
(2) A person resident outside India may trade in all exchange traded derivative contracts approved
by Securities and Exchange Board of India from time to time subject to the limits prescribed by
Securities and Exchange Board of India and conditions specified in Schedule 1.
(3) A person resident outside India may enter into contract in any derivative transaction subject
to conditions laid down by the Reserve Bank from time to time.
Merger or demerger or amalgamation of Indian companies
6. Where a Scheme of Arrangement for an Indian company has been approved by National Com-
pany Law Tribunal (NCLT)/Competent Authority the Indian company may issue non-convertible
redeemablepreferencesharesornon-convertibleredeemabledebenturesoutofitsgeneralreserves
by way of distribution as bonus to the shareholders resident outside India, subject to the following
conditions, namely:
(a) the original investment made in the Indian company by a person resident outside India is in
accordance with these Regulations and the conditions specified in the relevant Schedule;
(b) the said issue is in accordance with the provisions of the Companies Act, 2013 and the terms
and conditions, if any, stipulated in the scheme approved by National Company Law Tribunal
(NCLT)/Competent Authority have been complied with;
(c) the Indian company shall not engage in any activity/sector in which investment by a person
resident outside India is prohibited.
7. Taxes and remittance of sale proceeds.
7.1 Taxes
All transactions under these regulations shall be undertaken through banking channels in India
and subject to payment of applicable taxes and other duties/levies in India.
7.2 Remittance of sale proceeds
(1) No remittance of sale proceeds of a debt instrument held by a person resident outside India
shall be made otherwise than in accordance with these Regulations and the conditions specified
in the relevant Schedule.
(2) An authorised dealer may allow the remittance of sale proceeds of a debt instrument (net of
applicable taxes) to the seller of such instrument resident outside India:
Reg. 7 FOREIGN EXCHANGE MANAGEMENT (DEBT INSTRUMENTS) REGULATIONS, 2019 3.150

17. Provided—
(i) the instrument was held by the seller on repatriation basis; and
(ii) Reserve Bank’s approval has been obtained in other cases for sale of the instrument and
remittance of the sale proceeds thereof;
(3) An authorised dealer may allow remittances – both inward and outward – related for permitted
derivatives transactions.
SCHEDULE 1
Purchase and sale of debt instruments by
a person resident outside India
1. Permission to persons resident outside India
A. Permission to Foreign Portfolio Investors (FPIs)
An FPI may purchase the following debt instruments on repatriation basis subject to the terms
and conditions specified by the Securities and Exchange Board of India and the Reserve Bank:
(a) dated Government securities/treasury bills;
(b) non-convertible debentures/bonds issued by an Indian company;
(c) commercial papers issued by an Indian company;
(d) units of domestic mutual funds or Exchange-Traded Funds (ETFs) which invest less than or
equal to 50 percent in equity;
(e) Security Receipts (SRs) issued by Asset Reconstruction Companies;
(f) debt instruments issued by banks, eligible for inclusion in regulatory capital;
(g) Credit enhanced bonds;
(h) Listed non-convertible/redeemable preference shares or debentures issued in terms of
Regulation 6 of these Regulations;
(i) Securitised debt instruments, including (i) any certificate or instrument issued by a special
purpose vehicle (SPV) set up for securitisation of asset/s with banks, Financial Institutions
or NBFCs as originators;
(j) Rupee denominated bonds/units issued by Infrastructure Debt Funds:
Provided this will include such instruments issued on or after November 22, 2011 and held
by deemed FPIs.
(k) Municipal Bonds :
Provided that FPIs may offer such instruments as permitted by the Reserve Bank from time to
time as collateral to the recognized Stock Exchanges in India for their transactions in exchange
traded derivative contracts as specified in sub-Regulation (2) of Regulation 5.
B. Permission to Non-resident Indians (NRIs) or Overseas Citizens of India (OCIs) – Repatriation
basis
(1) A Non-resident Indian (NRI) or an Overseas Citizen of India (OCI) may, without limit, purchase
the following instruments on repatriation basis,—
(a) Government dated securities (other than bearer securities) or treasury bills or units of
domestic mutual funds or Exchange-Traded Funds (ETFs) which invest less than or equal to
50 percent in equity;
(b) Bonds issued by a Public Sector Undertaking (PSU) in India;
3.151 Purchase and sale of debt instruments Sch. 1

18. (c) Bonds issued by Infrastructure Debt Funds;
(d) Listed non-convertible/redeemable preference shares or debentures issued in terms of
Regulation 6 of these Regulations.
(2) An NRI or an OCI may purchase on repatriation basis debt instruments issued by banks, eligible
for inclusion in regulatory capital.
(3) An NRI may subscribe to National Pension System governed and administered by Pension Fund
Regulatory and Development Authority (PFRDA), provided such person is eligible to invest as per
the provisions of the PFRDA Act. The annuity/accumulated saving will be repatriable:
Provided that NRI/OCIs may offer such instruments as permitted by the Reserve Bank from time
to time as collateral to the recognized Stock Exchanges in India for their transactions in exchange
traded derivative contracts as specified in sub-regulation (2) of regulation 5.
C. Permission to Non-resident Indians (NRIs) or Overseas Citizens of India (OCIs) - Non-Repa-
triation basis
(1) An NRI or an OCI may, without limit, purchase on non-repatriation basis, dated Govern-
ment securities (other than bearer securities), treasury bills, units of domestic mutual funds or
Exchange-Traded Funds (ETFs) which invest less than or equal to 50 percent in equity, or National
Plan/Savings Certificates.
(2) An NRI or an OCI may, without limit, purchase on non-repatriation basis, listed non-convertible/
redeemable preference shares or debentures issued in terms of Regulation 6 of these Regulations.
(3) An NRI or an OCI may, without limit, on non-repatriation basis subscribe to the chit funds
authorised by the Registrar of Chits or an officer authorised by the State Government in this behalf.
D. Permission to Foreign Central Banks or a Multilateral Development Bank for purchase of
Government Securities
(1) Foreign Central Banks, Multilateral Development Banks or any other entity permitted by the
Reserve Bank, may purchase or sell dated Government Securities/treasury bills, as per terms and
conditions specified by the Reserve Bank.
2. Mode of Payment
(1) The amount of consideration for purchase of instruments by FPIs shall be paid out of inward
remittance from abroad through banking channels or out of funds held in a foreign currency
account and/or Special Non-Resident Rupee (SNRR) account maintained in accordance with the
Foreign Exchange Management (Deposit) Regulations, 2016. The foreign currency account and
SNRR account shall be used only and exclusively for transactions under this Schedule.
(2) The amount of consideration for purchase of instruments by NRIs or OCIs on repatriation basis
shall be paid out of inward remittances from abroad through banking channels or out of funds
held in NRE/FCNR(B) account maintained in accordance with the Foreign Exchange Management
(Deposit) Regulations, 2016.
(3) The amount of consideration for (a) purchase of instruments by NRIs or OCIs on non-repatria-
tion basis and (b) subscriptions to the National Pension System by NRIs shall be paid out of inward
remittances from abroad through banking channels or out of funds held in NRE/FCNR(B)/NRO
account maintained in accordance with the Foreign Exchange Management (Deposit) Regulations,
2016.
(4) The amount of consideration for purchase of dated Government securities by a Foreign Central
Bank or a Multilateral Development Bank shall be paid out of inward remittances from abroad
through banking channels or out of funds held in an account opened with the specific approval
of the RBI.
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19. (5) The amount of consideration for purchase of instruments by other non-resident investors shall
be paid out of inward remittances from abroad through banking channels.
3. Permission for sale of instruments
A person resident outside India who has purchased instruments in accordance with this Schedule
may sell/redeem the instruments subject to such terms and conditions as may be specified by the
Reserve Bank and the Securities & Exchange Board of India.
4. Remittance/credit of sale/maturity proceeds
(1) The sale/maturity proceeds (net of taxes) of instruments held by Foreign Portfolio Investors
(FPIs) may be remitted outside India or may be credited to the foreign currency account or SNRR
account of the FPI.
(2) The net sale/maturity proceeds (net of taxes) of instruments held by NRIs or OCIs, may be:
(a) Credited to the NRO account person concerned where the instruments were held on non-
repatriation basis,
(b) Credited to the NRO account person concerned where the payment for the purchase of the
instruments sold was made out of funds held in NRO account, or
(c) Remitted abroad or at the NRI/OCI investor’s option, credited to his NRE/FCNR(B)/NRO
account, where the instruments were purchased on repatriation basis.
(3) In all other cases, the sale/maturity proceeds (net of taxes) may be remitted abroad or credited
to an account opened with the prior permission of the Reserve Bank.
3.153 Purchase and sale of debt instruments Sch. 1