This document discusses compounding under the Foreign Exchange Management Act (FEMA) in India. It provides an overview of FEMA and the enforcement and adjudication processes. It then describes the compounding process in detail, including the authorities responsible, eligibility criteria, application procedure, and timelines. Compounding allows for the settlement of admitted FEMA contraventions by paying a penalty. The penalties depend on the amount involved and the seriousness of the contravention. The document outlines the different authorities responsible for compounding cases based on the amount involved and nature of the contravention.
Compounding refers to the process of voluntarily admitting the contravention, pleading guilty and seeking redressal. The Reserve Bank is empowered to compound contraventions under Foreign Exchange Management Act, 1999. In this webinar, we shall understand the provisions of FEMA Act and its regulations relating to Compounding of Offences
To analyse and understand the provisions of Foreign Exchange Management (Adjudication Proceedings And Appeal) Rules, 2000. We shall understand the provisions relating to imposition of penalty, the adjudicating authority, inquiry proceedings and the various aspects of appeal.
Compounding refers to the process of voluntarily admitting the contravention, pleading guilty and seeking redressal. The Reserve Bank is empowered to compound contraventions under Foreign Exchange Management Act, 1999. In this webinar, we shall understand the provisions of FEMA Act and its regulations relating to Compounding of Offences
To analyse and understand the provisions of Foreign Exchange Management (Adjudication Proceedings And Appeal) Rules, 2000. We shall understand the provisions relating to imposition of penalty, the adjudicating authority, inquiry proceedings and the various aspects of appeal.
it will help you to understand this concept very easily.
It contains definition of capital account transaction,explanation of definition, classification of capital account transaction (FDI, Portfolio investment, other investment & reserve account)
This presentation explains the impact of both India Foreign Exchange Laws and the India Transfer Pricing Regulations on the import and export transactions done with an Indian Entity.
Foreign exchange is applicable on all type of foreign inflow in the India. Fema is applicable venture funding in india. all investment by NRI in india subject to FEMA regulations.
Objectives and definitions under FEMA,
1999,current account transactions and
capital account transactions, establishment
of branch, office etc. in India, realization
and repatriation of foreign exchange,
authorized person, penalties and
enforcement, foreign contribution
(Regulation)Act, 2010.
Amendments in Budget 2015 in FEMA, FEMA amendments in BUDGET, Budget 2015 FEMA Amendments, FEMA amendments, Impact of change of capital account transactions, Budget 2015 FEMA, FEMA Budget 2015
it will help you to understand this concept very easily.
It contains definition of capital account transaction,explanation of definition, classification of capital account transaction (FDI, Portfolio investment, other investment & reserve account)
This presentation explains the impact of both India Foreign Exchange Laws and the India Transfer Pricing Regulations on the import and export transactions done with an Indian Entity.
Foreign exchange is applicable on all type of foreign inflow in the India. Fema is applicable venture funding in india. all investment by NRI in india subject to FEMA regulations.
Objectives and definitions under FEMA,
1999,current account transactions and
capital account transactions, establishment
of branch, office etc. in India, realization
and repatriation of foreign exchange,
authorized person, penalties and
enforcement, foreign contribution
(Regulation)Act, 2010.
Amendments in Budget 2015 in FEMA, FEMA amendments in BUDGET, Budget 2015 FEMA Amendments, FEMA amendments, Impact of change of capital account transactions, Budget 2015 FEMA, FEMA Budget 2015
GST is one indirect tax for the whole nation, which will make India one unified common market. GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer.
Long Term Visa (LTV) is granted to the following categories of persons of Bangladesh, Afghanistan and Pakistan coming to India on valid travel documents i.e. valid passport and valid visa, and seeking permanent settlement in India with a view to acquire Indian citizenship:-
i. Members of minority communities in Bangladesh/ Afghanistan/ Pakistan, namely Hindus, Sikhs, Buddhists, Jains, Parsis and Christians.
ii. Bangladesh/ Pakistan women married to Indian nationals and staying in India; or Afghanistan nationals married to Indian nationals in India and staying in India.
iii. Indian origin women holding Bangladesh/ Afghanistan/ Pakistan nationality married to Bangladesh/ Afghanistan/ Pakistan nationals and returning to India due to widowhood/ divorce and having no male members to support them in Bangladesh/ Afghanistan/ Pakistan.
iv. Cases involving extreme compassion.
Non-resident Indians are a section of people whose roots belong to India and who have migrated from India. The Indian Government is aware of the importance of Indian Diaspora in the form of NRIs/PIOs which is spread all across the world and which despite being away from India is making significant contribution to the Indian economy on a global platform and to the economic, financial and social benefits which have been brought to India; therefore, it attempts to provide benefits to them to attract their investments. They are also called for taking part in the economy. The Indian government gives lot of benefits to NRI not only with respect to ease of making investment in India but also in Taxation. The investment from NRIs is easy money available and provides the much needed leverage to the economy. The Indian Diaspora today constitutes an important, and inimitable, part of the Indian economy. The PPT discusses about he various account that can be opened by NRIs in India
In a move to further rationalize and liberalise the overseas investment central Government and Reserve Bank of India notified Foreign Exchange Management (Overseas Investment) Rules, 2022 and Foreign Exchange Management (Overseas Investment) Regulations, 2022 respectively on 22 Aug 2022.
The revised regulatory framework for overseas investment provides for simplification of the existing framework for overseas investment and has been aligned with the current business and economic dynamics. Immense clarity on Overseas Direct Investment and Overseas Portfolio Investment has been brought in and various overseas investment related transactions that were earlier under approval route are now under automatic route, significantly enhancing "Ease of Doing Business".
As per section 92 of the Income Tax Act,1961 “Any
income arising from an international transaction shall
be computed having regard to the arm's length
price” Where in an international transaction two or
more associated enterprises enter into a mutual
agreement or arrangement for the allocation or
apportionment of, or any contribution to, any cost or
expense incurred or to be incurred in connection with
a benefit, service or facility provided or to be
provided to any one or more of such enterprises, the
cost or expense allocated or apportioned to, or, as
the case may be, contributed by, any such enterprise
shall be determined having regard to the arm's
length price of such benefit, service or facility, as the
case may be.
The 2008 Financial Crisis changed the world of Banking. Many malpractices by the Banks and various financial institutions came into light and the regulators started scrutinizing and penalizing them. The world’s most important number “LIBOR” came under the sword of the Regulators. In this article we will explore the origins and the fall of the once revered LIBOR rate.
THERE ARE QUITE A FEW REGULATORY SPACES
WHICH NEEDS TO BE KEPT IN CONSIDERATION
WHILE MAKING THE REPORT. IN THIS ARTICLE WE
SHALL DISCUSS REGARDING DRAFTING AND THE
CONTENT OF VALUATION REPORT ONE BY ONE IN
DETAIL.
One of the important aspect of Start up is raising of funds. Fundraising is a necessary, and most important task in the life of Start ups. IN THIS ARTICLE GIVES PRELIMINARY INSIGHTS INTO FUND RAISING BY STARTUPS
LF Energy Webinar: Electrical Grid Modelling and Simulation Through PowSyBl -...DanBrown980551
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PowSyBl is an open source project hosted by LF Energy, which offers a comprehensive set of features for electrical grid modelling and simulation. Among other advanced features, PowSyBl provides:
- A fully editable and extendable library for grid component modelling;
- Visualization tools to display your network;
- Grid simulation tools, such as power flows, security analyses (with or without remedial actions) and sensitivity analyses;
The framework is mostly written in Java, with a Python binding so that Python developers can access PowSyBl functionalities as well.
What you will learn during the webinar:
- For beginners: discover PowSyBl's functionalities through a quick general presentation and the notebook, without needing any expert coding skills;
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DevOps and Testing slides at DASA ConnectKari Kakkonen
My and Rik Marselis slides at 30.5.2024 DASA Connect conference. We discuss about what is testing, then what is agile testing and finally what is Testing in DevOps. Finally we had lovely workshop with the participants trying to find out different ways to think about quality and testing in different parts of the DevOps infinity loop.
GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using Deplo...James Anderson
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The software team must secure its software delivery process to avoid vulnerability and security breaches. This needs to be achieved with existing tool chains and without extensive rework of the delivery processes. This talk will present strategies and techniques for providing visibility into the true risk of the existing vulnerabilities, preventing the introduction of security issues in the software, resolving vulnerabilities in production environments quickly, and capturing the deployment bill of materials (DBOM).
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Bob Boule
Robert Boule is a technology enthusiast with PASSION for technology and making things work along with a knack for helping others understand how things work. He comes with around 20 years of solution engineering experience in application security, software continuous delivery, and SaaS platforms. He is known for his dynamic presentations in CI/CD and application security integrated in software delivery lifecycle.
Gopinath Rebala
Gopinath Rebala is the CTO of OpsMx, where he has overall responsibility for the machine learning and data processing architectures for Secure Software Delivery. Gopi also has a strong connection with our customers, leading design and architecture for strategic implementations. Gopi is a frequent speaker and well-known leader in continuous delivery and integrating security into software delivery.
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Paper presented at SYNERGY workshop at AVI 2024, Genoa, Italy. 3rd June 2024
https://alandix.com/academic/papers/synergy2024-epistemic/
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CI/CD with in UiPath
End-to-end overview of CI/CD pipeline with Azure devops
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Dr. Sean Tan, Head of Data Science, Changi Airport Group
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Presented by Vladimir Iglovikov:
- https://www.linkedin.com/in/iglovikov/
- https://x.com/viglovikov
- https://www.instagram.com/ternaus/
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Created out of a necessity for superior performance in Kaggle competitions, Albumentations has grown to become a widely used tool among data scientists and machine learning practitioners.
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People: The contributors and community that have supported Albumentations.
Metrics: The success indicators such as downloads, daily active users, GitHub stars, and financial contributions.
Challenges: The hurdles in monetizing open-source projects and measuring user engagement.
Development Practices: Best practices for creating, maintaining, and scaling open-source libraries, including code hygiene, CI/CD, and fast iteration.
Community Building: Strategies for making adoption easy, iterating quickly, and fostering a vibrant, engaged community.
Marketing: Both online and offline marketing tactics, focusing on real, impactful interactions and collaborations.
Mental Health: Maintaining balance and not feeling pressured by user demands.
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Vladimir Iglovikov brings his extensive experience as a Kaggle Grandmaster, ex-Staff ML Engineer at Lyft, sharing valuable lessons and practical advice for anyone looking to enhance the adoption of their open-source projects.
Explore more about Albumentations and join the community at:
GitHub: https://github.com/albumentations-team/albumentations
Website: https://albumentations.ai/
LinkedIn: https://www.linkedin.com/company/100504475
Twitter: https://x.com/albumentations
2. Scheme of Presentation
Brief overview FEMA
Enforcement under FEMA
Adjudication under FEMA
Appeal under FEMA
Compounding under FEMA
By CA. Sudha G. Bhushan
Meaning
Authorities
Procedure
Application
Practical aspects
4. Procedural and
Administrative Enforcement
By CA. Sudha G. Bhushan
Aspects
• Reserve Bank of • Central
India Government
• Regulations (S 47) • Rules (S 46)
5. Relevant Rules/Regulation
• Foreign Exchange Management ( Adjudication Proceedings
and Appeal) Rules, 2000
• Foreign Exchange (Compounding Proceedings)Rules , 2000
By CA. Sudha G. Bhushan
7. Enforcement under FEMA
Officers of Enforcement
Directors of enforcement
Special Directorate of Enforcement
By CA. Sudha G. Bhushan
Additional Director of Enforcement
Deputy Directors of Enforcement
Deputy Legal Adviser
Assistant Director of Enforcement
Assistant Legal Adviser
8. Adjudicating authority
• Following has been appointed as the Adjudicating Authority
under FEMA [under section 16 of the Act vide S.O 535(E),
dated 1-6-2000 to hold an enquiry under Section 13 of the
Act].
• Directors of Enforcement
By CA. Sudha G. Bhushan
• Special Directorate of Enforcement
• Additional Director of Enforcement
• Deputy Directors of Enforcement
9. • Makes a
Officers Complaint
By CA. Sudha G. Bhushan
Adjudicating • Holds
Authority Enquiry
• alleged to have
committed
On Persons contravention
u/s 13
10. Contd…
Director of Enforcement have the jurisdiction over the cases
involving an amount exceeding Rs. one crore
Special Director of Enforcement I, II and III have the jurisdiction
over the cases involving amount exceeding Rs.one crore
By CA. Sudha G. Bhushan
[jurisdiction over specified zones]
Additional Director have the jurisdiction over the cases involving
amount of Rs.75 lakhs but not over 1 crore.
Deputy Director’s jurisdiction is on the cases in which amount
involved does not exceed Rs. 75 Lakhs.
Under Section 6(3)(g) and 7(1)(a) is Commissioner of Customs and
Central Excise.
11. Special Director
(Appeals)
Appeal against Order
passed by
By CA. Sudha G. Bhushan
Adjudicating
Authority Appellate Tribunal
12. Procedure
• Director Appeal • Appellate Tribunal
- Three copies • - Form II
- Form 1 • Three copies
• Demand draft of INR
By CA. Sudha G. Bhushan
- Demand draft of INR
5000/- payable in 5000/- payable in
favour of special favor appellate
director tribunal for foreign
exchange, New Delhi
13. Appellate Tribunal
• Adjudicating authority
not being Assistant
Special Director Director /Deputy
By CA. Sudha G. Bhushan
(Appeals) Director of enforcement
• Adjudicating authority
being Assistant Director
of Enforcement or a
Deputy Director of
enforcement
16. Compounding
• Not defined under FEMA
• As per Master circular dated 01 July 2012 :- Compounding of
contraventions under FEMA is a voluntary process by which an
applicant can seek compounding of an admitted contravention
of any provision of FEMA under Section 13(1) of the FEMA,
By CA. Sudha G. Bhushan
1999.
17. Amount of Penalty
Amount of
contravention • Thrice the sum involved in such
contravention
is Quantifiable
By CA. Sudha G. Bhushan
Amount is not • Two Lakh Rupees
quantifiable
• Rs. 5000 per day for every day
Continuing during which the default continues
18. Compounding Powers
• Reserve Bank of India – All the Sections of FEMA except
Section 3(a) of the Act
• Directorate of Enforcement – Section 3(a) of the Act
(Essentially dealing with Hawala Transactions)
By CA. Sudha G. Bhushan
19. Nature of Contravention
• Whether the contravention is technical and /or minor in
nature and needs only an administrative cautionary advice
• Whether the contravention is serious in nature and warrants
By CA. Sudha G. Bhushan
compounding of the contravention
• Whether the contravention, prima facie, involves money
laundering, national and security concerns involving serious
infringement of the regulatory framework.
20. Directorate of Enforcement
Sum Involved in Authorized Person
Contravention
Rs 5 lakhs and below Deputy Director
Above Rs.5 lakhs but of Addl. Director of
below Rs.10 lakhs Enforcement Directorate
By CA. Sudha G. Bhushan
Above Rs 10 lakhs but of Special Director
below Rs. 50 lakhs
Above Rs. 50 lakhs but with Special Director with Legal
below Rs. 1 crore Adviser of Deputy
Enforcement Directorate
Rs.1 crore or more Director of Enforcement with
Special Director of
Enforcement Directorate
21. Reserve Bank of India
Sum Involved in Authorized Person
Contravention
Rs 10 lakhs and below Assistant General
Manager of RBI
Above Rs.10 lakhs but
By CA. Sudha G. Bhushan
of below Rs.40 lakhs Deputy General
Manager of RBI
Above Rs 40 lakhs but
of below Rs. 1 Crore General Manager of
RBI
Rs.1 crore or more
Chief General
Manager of RBI
22. Compounding authority
Persons authorized by the Central
Government under sub-section
(1) of section 15 of the Act
By CA. Sudha G. Bhushan
An officer of the
An officer of the Reserve
Enforcement Directorate
Bank of India not below the
not below the rank of
rank of the Assistant General
Deputy Director or Deputy
Manager
Legal Adviser (DLA)
23. Process of compounding
• A duly completed application (in duplicate) for compounding of a contravention under
FEMA, 1999 may be submitted to the Compounding Authority (CA) on being advised
of a contravention under FEMA, 1999, either through a memorandum or suo moto
on being made or on becoming aware of the contravention. The format “Form” of the
application is appended to the Foreign Exchange (Compounding Proceedings) Rules,
2000 (Annexed).
By CA. Sudha G. Bhushan
• The application for compounding has to be submitted together with relevant facts
and supporting documents and a copy of the memorandum, wherever applicable.
• Prescribed fee of Rs.5000/- is payable by way of a demand draft drawn in favour of
“Reserve Bank of India” and payable at the centre where the application shall be
processed/was processed and the compounding order was issued.
• The application may be submitted with to: The Compounding Authority, [Cell for
Effective implementation of FEMA (CEFA)], Foreign Exchange Department, 3rd floor,
Amar Building, Sir P.M. Road, Fort, Mumbai- 400001 or as advised in the
memorandum issued by the office of the Reserve Bank.
24. • The applicant must indicate the following information about the
authorized person of the entity who would be handling the
complete process of the compounding :
• Name and Designation of the authorised person for the contravener
By CA. Sudha G. Bhushan
• Telephone/Fax/Email of the authorized person.
• Details of the contravener e.g. date of incorporation, ownership pattern,
activity, transaction etc. may be provided.( In column-6 of the Form (Brief facts of
the case).
25. • The contravener/applicant shall specify the details of the contraventions sought to be
compounded in column-5 [according to sub-section (1) of Section 13] explicitly and expressly i.e.
the provision of the FEMA, or Rule, Regulation, Direction or order issued in exercise of the powers
under the FEMA, or condition subject to which an authorization was issued by the Reserve Bank.
• The contravener/applicant shall also specify / describe in the application the details/facts (e.g.
date, amount (in Indian Rupees), parties involved etc.) of the transaction for which the
By CA. Sudha G. Bhushan
contravention has occurred.
• Incomplete applications shall be liable to rejection by the Reserve Bank and appropriate action for
the contravention of the FEMA shall be taken accordingly.
• The gravity and nature of the contravention would be assessed by the compounding authority on
the basis of information/document submitted together with the application.
• Non-submission of relevant information/document during the processing of the compounding
application would be considered as willful and intentional suppression of the material fact and the
compounding application would be liable for rejection and appropriate action for contravention
under the FEMA.
26. • Communications and orders issued under the compounding process shall be served on the
authorised person in any of the following manners, which are to say by fax/Courier/Registered
Post by sending it to the address/information given in the compounding application.
• The sum for which the contravention is compounded as specified in the order of compounding is
payable by way of a demand draft in favour of the “Reserve Bank of India” within fifteen days
from the date of the order of compounding of such contravention. The demand draft has to be
deposited in the manner as directed in the compounding order.
By CA. Sudha G. Bhushan
• On realization of the sum for which contravention is compounded a certificate is issued by the
Reserve Bank subject to the specified conditions, if any, in the order.
• Contraventions relating to any transaction where proper approvals or permission from the
Government or statutory authority concerned, as the case may be, have not been obtained, such
contraventions would not be compounded unless the required approvals are obtained from the
authorities concerned.
• On receipt of the application for compounding, the proceedings would be concluded and order
issued by the CA within 180 days from the date of the receipt of the application. The order of CA
has to be speaking order and an opportunity of being heard is required to be given to the
applicant. The application once made cannot be withdrawn.
27. Non Compliance in Foreign Direct Investment in India
By CA. Sudha G. Bhushan
Non Compliance in Overseas Investment
Non Compliance in External Commercial Borrowings
Non compliance in Export /import obligations
Others