Suppose that a foreign resident has bought 20 percent of
Suppose that a foreign resident has bought 20 percent of the shares of a company based in a developing nation but is experiencing difficulty determine whether the firm has responded to this purchase by engaging in risker behavior. What type of investment has this foreign resident undertaken, and what type of asymmetric information problem is she or he experiencing?
Suppose that a foreign resident has bought 20 percent of
What are the provisions relating to realization and repatriation of Foreign Exchange?
Explain the meaning of the term ‘adjudicating authority’ under the FEMA.
What are the penalties provided under the FEMA for the contravention of provisions of Act?
Explain the provisions relating to the compounding of offence under the act?
Explain about the liberalized remittance scheme for the resident individual.
In which cases can exports of goods or services be made without furnishing the declaration?
Explain the meaning of the term ‘capital account transaction’ under the FEMA?
Which are the prohibited capital account transactions?
Explain the provisions for acquiring and transferring immovable property in India by the foreign nationals.
What do you understand by the current account transactions?
Which are the current account transactions for which drawl of Foreign Exchange is prohibited?
Which are the current account transactions for which the Foreign Exchange can be drawn subject to the prior approval of the Central Government?
Which are the current account transactions for which the Foreign Exchange can be drawn subject to the prior approval of the RBI?
What are the provisions of the FEMA, relating to the export of goods and services?
Bring out the significant differences between the Foreign Exchange Regulation Act, 1973 and Foreign Exchange Management Act, 1999.
Define the term ‘person resident in India’ and ‘person resident outside India’.
How will you determine whether a particular business unit like a factory or office, is ‘person resident in India’ under the FEMA?
What do you mean by the expression ‘authorized person’? Explain the provisions relating to the authorized person.
What are the duties of the authorized person?
Define the following terms
1. Currency
2. Currency note
3. Foreign currency
4. Foreign Exchange
5. Foreign security
6. Import
7. Security
8. Transfer
Mr. Loma, an Indian national desire to obtain Foreign Exchange for the following purposes:
- Payment to be made for securing insurance for health from a company abroad.
- Payment of commission on exports under Rupee State Credit Route.
- Gift remittance exceeding US $10,000.
Advise him whether he can get Foreign Exchange and if so, under what condition?
State whether there are any restrictions in respect of the following transactions:
- The drawl of Foreign Exchange for payments due on account of amortization of loans in ordinary course of business.
- Purchase by a person resident outside India, of shares of a company in India engaged in plantation activities.
State which kind of approval is required for the following transactions under the Foreign Exchange Management Act, 1999:
- X, a Film Star wants to perform along with his associates in New York on the occasion of Diwali for the Indians residing at New York. A Foreign Exchange drawl to the extent of US $20,000 is required for this purpose.
- F International Ltd has purchased the trade mark from a Foreign company to establish a retail business chain in India as a joint venture at a consolidated price of US $500,000 which is to be paid in the foreign currency of that country.
- R wants to get his heart surgery done at UK. Up to what limit Foreign Exchange can be drawn by him and what are the approvals required?
- L wants to pursue a course in Fashion design in Paris. The Foreign Exchange drawl is US $20,000 towards the tuition fees and US $30,000 for the incidental and stay expenses for studying abroad.
Mr. Atul, an Indian national desire to obtain Foreign Exchange for the following purposes:
- Remittance of US $10,000 for the payment for goods purchased from a party situated in Nepal.
- US $10,000 for remitting as commission to his agent in U.S.A. for the sale of commercial plots situated near Bangalore, consideration in respect of which was received by Mr. Atul by way of foreign currency inward remittance amounting to US $1,00,000. Advise him if he can get the Foreign Exchange and under what conditions.
Mr. Basu desires to draw Foreign Exchange for the following purposes:
- Payment related to ‘Call back services’ of telephones.
- US $1,20,000 for studies abroad on the basis of the estimates given by the foreign university.
- US $25,000 for sending a cultural troupe on a tour of Europe.
Advise him whether he can get Foreign Exchange and if so, under what conditions.
Examine, whether the following transactions are permissible or not under the above act as the capital account transactions:
- Investment by a person resident in India in Foreign securities.
- Foreign currency loans raised in India and abroad by a person resident in India.
- Export, import and holding of currency/currency notes.
- Trading in transferable development rights.
- Investment in a Nidhi Company.
Examine, with the reference to the provisions of the Foreign Exchange Management Act, 1956 the residential status of the branches mentioned below:
- MKP Limited, an Indian company having its Registered office at Mumbai, India established a branch at New York, U.S.A. on 1 April 2004.
- WIP Ltd, a company incorporated and registered in London, established a branch at Chandigarh in India on 1 April 2004.
- WIP Ltd.’s Singapore branch which is controlled by its Chandigarh branch.
Examine whether the following branches can be considered as a ‘person resident in India’ under the Foreign Exchange Management Act, 1999:
- ABC Limited, a company incorporated in India established a branch at London on 1 January 2003.
- M/s XYZ, a foreign company established a branch at New Delhi on 1 January 2003. The branch at New Delhi controls a branch at Colombo.
Mr. Ram had resided in India during the financial year 1999–2000, for less than 183 days. He again came to India on 1 May 2000 for higher studies and business and stayed up to 15 July 2001. State under the Foreign Exchange Management Act, 1999:
- If Mr. Ram can be considered ‘person resident in India’ during the financial year 2000–2001, and
- Is the citizenship relevant for determining such a status?
‘Printex Computer” is a Singapore based company having several business units all over the world. It has a unit for manufacturing computer printers with its headquarters in Pune. It has a branch in Dubai which is controlled by the headquarters in Pune. What would be the residential status under the FEMA, 1999 of printer units in Pune and that of Dubai branch?