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<h1>FEMA 1999 and 2022 Rules Define Permissible Capital Account Transactions, Including Loans and Investments for Residents and Non-Residents.</h1> The Foreign Exchange Management Act (FEMA) of 1999, alongside the Foreign Exchange Management (Overseas Investment) Rules of 2022, outlines permissible capital account transactions. The Reserve Bank, in consultation with the Central Government, specifies permissible classes of transactions, limits, and conditions, exempting certain transactions like loan amortization and investment depreciation. Debt instruments include government and corporate bonds, securitization tranches, loans, and depository receipts. Regulations classify transactions for Indian residents, such as foreign investments and loans, and for non-residents, including investments in India and property transactions. Transactions must adhere to specified limits and conditions.