As announced in Statement on Development and Regulatory Policies dated December 4, 2020, RBI delegates more power to AD banks in the areas like Direct Dispatch of Shipping Documents, “Write-off” of unrealized export bills, Set-off of Export receivables against Import payables, Refund of Export Proceeds. Direct Dispatch of Shipping Documents: With a view to simplifying…
The Ministry of Ports, Shipping, and Waterways have issued a draft of the Merchant Shipping Bill, 2020 with all updated International Maritime Organisation Conventions, to which India is a party and invited the public for their comments on the bill. The Merchant Shipping Bill, 2020 has been drafted to promote the growth of the Indian…
The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has decided to discontinue the system-based automatic caution-listing of exporters in view of the impact of the COVID-19 pandemic. While reading the Statement on Developmental and Regulatory Policies dated 09.10.2020, RBI Governor Shaktikant Das said that “Exports have been adversely impacted by the…
Central Board of indirect revenue and customs, Ministry of Finance in its letter dated September 7, 2020, asked the Principal Chief Commissioner and Chief Commissioner to allow the facility of Auto Let Export Order (LEO) under the Express Cargo Clearance System (ECCS), in order to facilitate exports by courier and to enhance the global competitiveness…
The treasury management (or treasury operations) can be explained as the management of the best possible use of surplus funds, maintain liquidity, reduce the overall cost of funds, and mitigate operational and financial risk. Traditionally, banks used to have two separate departments for treasury operations of a bank namely the domestic treasury/investment operations of a…
In the settlement system under the Asian Clearing Union (ACU) Mechanism, all instruments of payments are required to be denominated in Asian Monetary Unit. The Asian Monetary Unit is the common unit of account of ACU and is equivalent in value to one U.S.Dollar. Hitherto, the Asian Monetary Unit was denominated only as ACU dollar.[…
A convertible note is a form of short-term debt instrument issued by a start-up company that converts into equity, typically in conjunction with a future financing round. It means the investor would be loaning money to a startup and normally would receive equity in the company in lieu of a return in the form of…
FVCI stands acronym for Foreign Venture Capital Investor’ (FVCI). FVCIs are investors incorporated and established outside India and registered with the Securities and Exchange Board of India under the Securities and Exchange Board of India (Foreign Venture Capital Investors) Regulations, 2000. They can make an investment in India in terms of schedule 7 of FEMA…
This article distinguishes amongst foreign investment, Foreign Direct Investment, Foreign Portfolio investments, Qualified Foreign Investor (QFI), Foreign Institutional Investor (FII), etc. Foreign Investment: Any investment made by a person resident outside India on a repatriable basis in capital instruments of an Indian company or to the capital of a Limited Liability Partnership (LLP) is known…
[This article elucidates the FEMA rules for the transfer of sale proceeds of immovable properties abroad and documents required for the same.] Section 6(5) in the Foreign Exchange Management Act, 1999 provides that “A person resident outside India may hold, own, transfer or invest in Indian currency, security or any immovable property situated in India…