Capital account transaction definitions clarify foreign exchange drawals, transferable development rights, and derivative contracts under FEMA. Regulation 2 defines drawal, transferable development rights, and derivatives for permissible capital account transactions. Drawal includes foreign ... Summary
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Capital account transaction definitions clarify foreign exchange drawals, transferable development rights, and derivative contracts under FEMA.
Regulation 2 defines drawal, transferable development rights, and derivatives for permissible capital account transactions. Drawal includes foreign exchange obtained from an authorised person and the use of instruments, including letters of credit and international cards, that create foreign exchange liability. Transferable Development Rights are certificates issued for land surrendered without monetary compensation for public purposes. A derivative is a financial contract settled in the future whose value is derived from financial or non-financial variables.
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