Export realisation and repatriation - exporters must remit full export proceeds; banks must verify, report and monitor compliance.
Consolidation of RBI and FEMA directions requiring exporters to furnish prescribed export declaration forms (GR/SDF/PP/SOFTEX), and obliging exporters to realise and repatriate full export proceeds to India within prescribed periods. AD Category I banks must verify, process and report export receipts, maintain export bills registers, operate NOSTRO collection and EEFC/DDA/foreign currency accounts under specified conditions, monitor overdue bills, manage extensions and write offs subject to documented evidentiary and prudential safeguards, and follow detailed operational procedures for trade fairs, consignments, consignor dispatches, software invoicing, SEZ/project exports and special settlement mechanisms.

External commercial borrowings rules: two routes define borrower eligibility, permitted end uses, maturity and reporting obligations.
The Master Circular consolidates the regulatory framework for External Commercial Borrowings and trade credits, establishing two routes: the Automatic Route for eligible corporates, SEZ units and specified NGOs subject to recognised lender categories, minimum average maturities, all in cost ceilings and defined permitted end uses concentrated on real and infrastructure investment; and the Approval Route for proposals outside automatic limits or special entities subject to Reserve Bank approval. It prescribes security, guarantee restrictions, parking of proceeds, prepayment and refinancing rules, delegation to AD banks for limited post LRN changes, and detailed reporting and disclosure obligations including Loan Registration Number requirements and periodic returns.

Compounding of contraventions enables voluntary settlement under FEMA, with Reserve Bank administered procedure and referral for serious breaches.
Compounding under FEMA is a voluntary settlement mechanism administered by the Reserve Bank (except clause (a) of Section 3 matters handled by the Directorate of Enforcement). Applications in prescribed form with fee are submitted to the Compounding Authority, which may call for documents, hold personal hearings and conclude proceedings within the prescribed period. The Compounding Order specifies the provisions contravened and the sum to be paid; quantum is determined at the discretion of the Authority based on factors such as unfair gain, loss to the exchequer, repetitiveness and the contravener's conduct. Non-quantifiable, money-laundering, national security or serious regulatory breaches are excluded and referred for investigation.

Import compliance: banks must secure prescribed documentary evidence and apply strict KYC and due diligence before permitting import payments.
Consolidated Reserve Bank instructions require AD Category I banks to ensure imports conform with the Foreign Trade Policy and FEMA, follow UCPDC and KYC/AML norms, obtain prescribed documentary evidence such as Exchange Control copies of Bills of Entry or auditor certificates for imports, and apply commercial judgment and due diligence when permitting advance remittances or special sectoral exceptions, with specified time limits, guarantee requirements, reporting obligations and document preservation duties.

Non Resident Ordinary Rupee Account rules define permissible credits, debits and repatriation subject to documentary and tax compliance.
The Master Circular consolidates rules for Non Resident Ordinary Rupee (NRO) accounts under FEMA: eligible NRIs/PIOs may open various rupee account types for bonafide transactions; permitted credits include inward remittances, legitimate India sourced income and sale proceeds of assets, while debits include local rupee payments and remittance of current income abroad. Remittance of sale proceeds and balances is allowed subject to documentary proof, an undertaking and a Chartered Accountant certificate in prescribed formats, with specified nationality based restrictions. Operational rules cover account re designation on change of residence, loans/overdrafts against deposits, Power of Attorney operations, tax compliance and reporting obligations for authorised dealers.

Rupee Vostro account rules require prior approval, restricted uses, collateralised funding and strict KYC and reporting.
Requires prior Reserve Bank approval for AD Category I banks to open and maintain Rupee and foreign currency vostro accounts of non resident Exchange Houses; mandates credit only, non transferable, non interest bearing accounts used solely to channel specified cross border personal remittances and limited trade payments; prescribes DDA, Non DDA and Speed Remittance procedures with auditor/representative oversight, collateral requirements based on vintage of operations, and stringent KYC/AML/CFT, internal controls, periodic inspections and statutory reporting through prescribed statements and an annual board approved review to the Reserve Bank.

Immovable property acquisition rules: conditions, payment routes and repatriation limits govern cross-border property transactions.
The Master Circular consolidates FEMA-based rules governing acquisition and transfer of immovable property by NRIs, PIOs and foreign nationals, specifying that NRIs and PIOs may buy residential and commercial property but not agricultural land, plantation property or farmhouses; payments must be by inward remittance or from specified non-resident accounts; certain acquisitions require Form IPI declaration; repatriation of sale proceeds is conditional on original compliance, limits tied to original foreign exchange outlay or non-resident account balances, production of documentary evidence and tax clearance, and special permissions apply for diplomatic entities and citizens of specified countries.

Establishment of foreign liaison, branch and project offices requires Reserve Bank approval and compliance with activity, reporting and closure rules.
Establishment and regulation of foreign entities' offices in India require prior Reserve Bank approval through designated AD Category I banks, assessed via Reserve Bank or Government Routes based on sectoral FDI permission. The RBI considers track record and net worth thresholds, permits letters of comfort from parents for subsidiaries, and assigns a Unique Identification Number; approved offices must obtain PAN. Liaison Offices are limited to non income liaison functions and renewable by AD banks; Branch Offices may undertake specified commercial activities but not retail trading or manufacturing outside SEZ permissions. Project Offices qualify under funding or sanctioning criteria and may maintain restricted foreign currency accounts. Annual Activity Certificates and audited accounts, AD bank scrutiny, and prescribed closure documentation are mandatory for compliance and remittance of profits.

Remittance limits for non-residents require bank certification and tax compliance before repatriation is permitted.
Remittance facilities under FEMA permit NRIs/PIOs and certain foreign nationals to remit current income, sale proceeds of assets and salary subject to documentation, tax compliance and Authorised Dealer bank satisfaction. Repatriation of sale proceeds requires evidence of acquisition/inheritance, an undertaking by the remitter and a Chartered Accountant certificate in prescribed formats. Specified annual repatriation limits and nationality based exclusions apply. Authorised Dealer banks must obtain and preserve declarations, ensure transactions do not contravene FEMA, and report suspected contraventions to the Reserve Bank.

Liberalised Remittance Scheme permits resident individuals to remit abroad for permitted current and capital transactions subject to limits and exclusions.
Authorised Dealers are delegated authority to release foreign exchange to residents for specified non trade current account and certain capital account transactions under FEMA, subject to schedule based prohibitions and referral to the Reserve Bank for amounts exceeding delegated limits; the circular prescribes categories of permissible remittances, self declaration and documentation thresholds (including simplified Form A2 and PAN requirement for the Liberalised Remittance Scheme), a 180 day surrender rule for unspent exchange, residency foreign currency account provisions, and operational conditions for cards, guarantees, advance remittances and reporting by AD banks.

Certificate of Origin authorisation expanded: EIC may issue Certificates under IMCECA following addition to Appendix heading.
Addition of IMCECA to the heading of Appendix 4D of the Handbook of Procedures Vol. I incorporates the India Malaysia Comprehensive Economic Cooperation Agreement into the Appendix's scope without changing its content. Consequently, the Export Inspection Council remains the authorised agency and is empowered to issue Certificates of Origin under IMCECA, effective from the operative date in the public notice.

Two-factor authentication for internet trading required to strengthen client authentication and secure order transmission.
Brokers must capture the IP address for all IBT/STWT orders, ensure high system availability, implement secure end-to-end encryption with mutual authentication, and protect systems against internal and external attacks. Systems should provide alternate authenticated communication channels upon failure, automatic logout for inactivity, and on-site plus remote backup and restore capabilities. Two-factor authentication, preferably PKI-based digital signatures from a government-certified agency with distinct factors, is recommended. Exchanges must monitor unauthorized access complaints, amend rules, notify members, disseminate the provisions, and report implementation status to the regulator monthly.

FCCB buyback rules: expanded automatic and approval routes allow premature repurchase subject to specified discounts and funding conditions.
Premature buyback and prepayment of FCCBs are allowed through expanded automatic and approval routes. Under the automatic route, buyback value must be at least an 8% discount to book value, funded from existing foreign currency funds (including EEFC) or compliant fresh ECBs, with applicable all in cost ceilings for short term or relevant maturities. Under the approval route, prior Reserve Bank approval is required and tiered minimum discounts on book value apply by redemption value bands; applications must be submitted through designated AD Category I banks to the ECB Division. The facility is effective immediately and must be completed by the specified cut off date.

Government-route FDI conversion permitted for import payables and pre operative expenses, subject to valuation, timelines, pricing and tax clearance.
Government route conversion into equity is permitted for import payables for capital goods and for pre operative/pre incorporation expenses, subject to compliance with import policy and FEMA import regulations, independent third party valuation and customs documentation for imports, disclosure of beneficial ownership, completion of conversion within 180 days of shipment or within the permitted retention period for advances, submission of FIRCs and auditor certification for pre operative expenses, direct payment by the foreign investor, a company special resolution, adherence to RBI pricing guidelines, and appropriate tax clearance.

Export controls on pharmaceuticals: exporters must provide Certificate of Analysis and permit sample retention for regulatory inspection.
Exporters must furnish a Certificate of Analysis at shipment issued by the manufacturer, an importing country approved laboratory, or a laboratory approved by the Drugs Controller under the Drugs and Cosmetics Act; port drug control officials may retain consignment samples for reference and tracking of the manufacturer or exporter.

Barcode traceability requirement deferred; staggered implementation set for tertiary, secondary and primary packaging with compliance timelines.
Deferment of the mandated trace and track system requires exporters to implement GS1-standard barcode serialization at primary, secondary and tertiary packaging levels with importer-specific exceptions; manufacturers must retain serialized export records for six months post-expiry, authentication features will follow, and a Central Portal will be established for tracing and tracking exports.

Cost audit requirement: specified manufacturing and mining companies must obtain annual cost audits and file prescribed reports under new rules.
Companies to which the Companies (Cost Accounting Records) Rules, 2011 apply and engaged in specified industries must have annual cost accounting records audited by a practising cost accountant or firm for financial years commencing on or after 1 April 2011 when turnover or listed-securities criteria are met; audits must follow the revised appointment procedure, produce reports under the Companies (Cost Audit Report) Rules, 2011, be filed in the prescribed format and timeframe, with exemptions for bodies corporate under special Acts and penalties for default.

Overseas Direct Investment transfer rules permit sale of foreign JV/WOS subject to specified conditions and reporting.
The Reserve Bank permits Indian parties to sell shares of overseas JV/WOS without prior approval where the sale does not cause write off, is on a listed exchange or at a CA/CPA certified fair value if private, the overseas concern has operated for at least one year and filed audited accounts and performance report, no dues or export proceeds are outstanding, and the Indian party is not under investigation; specified write off disinvestments are permitted without prior approval in enumerated cases subject to the same operational conditions; disinvestment details must be filed with the designated AD Category I bank within thirty days, otherwise prior RBI permission is required.

Debarment for failure to export cotton bars firms from future allocations; affected exporters may seek rectification with issuing authority.
Exporters issued Registration Certificates who failed to submit required shipment documents within prescribed time or who did not export the full allocated cotton quantity have been compiled by Regional Authorities and listed as defaulters; firms within a five percent tolerance were excluded. Listed exporters are debarred from future allocations and subject to penal action under the FT(D&R) Act, while those disputing recorded shortfall/excess or alleging timely submission may seek rectification from the RC issuing authority within three days with supporting documents.

Assignment of Show Cause Notice transfers adjudication to the designated Customs Commissioner for processing.
The Board assigns the Show Cause Notice in the matter of M/s Gee Kay International and others to the Commissioner of Customs, Customs (Preventive) Commissionerate, Amritsar for the purpose of adjudication, transferring adjudicatory responsibility from the issuing investigative unit to the designated customs adjudicator under the Board's statutory delegation. The assignment functions as an administrative transfer of adjudication authority and is circulated to relevant customs and revenue offices for processing.