Capital account transactions are regulated through distinct debt and non-debt instrument frameworks, preserving specified asset rights and payment protections. Section 6 permits foreign exchange for capital account transactions through an authorised person, subject to prescribed permissions, limits and ... Summary
Foreign Exchange Management (Establishment in India of a branch office or a liaison office or a project office or any other place of business) Regulations, 2016
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Capital account transactions are regulated through distinct debt and non-debt instrument frameworks, preserving specified asset rights and payment protections.
Section 6 permits foreign exchange for capital account transactions through an authorised person, subject to prescribed permissions, limits and conditions. The Reserve Bank may regulate permissible transactions involving debt instruments, while the Central Government may prescribe corresponding matters for transactions not involving debt instruments, in each case through consultation. Foreign-exchange drawal for ordinary-course loan amortisation and depreciation of direct investments cannot be restricted. The provision also preserves specified rights of residents and non-residents over assets acquired or inherited through prior residential status.
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