Repatriation of the sale proceeds of immovable property
[This article elucidates the FEMA rules for the transfer of sale proceeds of immovable properties abroad and the 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…
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Revised guidelines for Merchanting Trade Transactions (MTT)
In the Indian context, when a transaction involves the shipment of goods from one foreign country to another foreign country through an Indian Intermediary it is called merchanting trade or Intermediary trade. Goods involved in the merchanting trade transactions would be the ones that are permitted for exports/imports under the prevailing Foreign Trade Policy (FTP)…
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RBI permits Inter-bank dealings beyond on-shore market hours
The Reserve Bank of India added the following section to Part C (Inter-Bank Foreign Exchange Dealings) of the Master Direction- Risk Management and Inter-Bank Dealings. “Transactions with person residents outside India, through their foreign branches and subsidiaries may also be undertaken beyond onshore market hours.” The RBI notification issued by RBI on Monday (January 6)…
Read article Hedging of foreign exchange risk by residents and non-residents
Pursuant to an announcement made in during February 2019 regarding the review of foreign exchange hedging facilities by non-residents and residents. RBI also issued the draft regulations for public comments proposing to replace the existing directions in Part A – Section I and II of the Master Direction on Risk Management and Interbank Dealing. The…
Read article FEDAI RULES: Business Hours for quoting FX rates
EFFECTIVE FROM 01 APRIL 2019, in the Inter-bank forex market for quoting exchange rate of Indian Rupees (INR)/Foreign Currency (FCY), business hours would be between 9.00 a.m. and 5.00 p.m. The customer transaction for INR/FCY should not be undertaken by the Authorised Dealers beyond 4.30 p.m. on all working days. The cut-off time specified above…
Scope of Special Non-Resident Rupee (SNRR) Account being enhanced: RBI
RBI in its Statement on Developmental and Regulatory Policies, on Friday, October 4, 2019, announced that the scope of non-interest bearing Special Non-resident Rupee (SNRR) Account being enhanced. The statement said that in consultation with the Government, it is decided by RBI to permit persons resident outside India to open SNRR accounts, facilitating Rupee denominated…
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