In continuation of its decentralisation and liberalisation of the Foreign Exchange Management Act, 1999 (FEMA 1999) Regulatory Framework in India, the Reserve Bank of India (RBI) has now delegated the compounding powers under FEMA to its regional offices. Detailed directions pertaining to compounding of contraventions under FEMA 1999 have already been issued by RBI previously. The present notification and press release numbered 2011-2012/927 is continuation of the same.
RBI maintains that as a customer service measure and for operational convenience, it has been decided to delegate powers to the Regional Offices of the RBI to compound certain contraventions of FEMA 1999. The contraventions include:
(i) delay in reporting of inward remittance,
(ii) delay in filing of form FC-GPR after allotment of shares and
(iii) delay in issue of shares beyond 180 days. (i.e. paragraphs 9(1)(A), 9(1)(B) and 8, respectively, of Schedule I to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000, notified vide Notification No. FEMA 20/2000-RB dated May 3, 2000 and as amended from time to time).
