Capital account transactions: regulatory framework permits sale or drawal of foreign exchange subject to prescribed classes, limits and conditions. Capital account transactions allow sale or drawal of foreign exchange for capital purposes subject to specification of permissible classes, admissibility ... 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: regulatory framework permits sale or drawal of foreign exchange subject to prescribed classes, limits and conditions.
Capital account transactions allow sale or drawal of foreign exchange for capital purposes subject to specification of permissible classes, admissibility limits and conditions. Competence is split: the monetary regulator together with the national government may define permissible debt instruments and set limits and conditions, while the national government with the regulator may prescribe non debt transaction classes, limits and conditions. Protections are provided for drawals for amortisation of loans and depreciation of direct investments. Residence based rules govern holding or transfer of foreign and domestic assets, and the regulator may regulate establishment in the country by nonresidents.
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