Cross border borrowing and lending rules: Reserve Bank framework sets eligibility, limits, end uses and reporting obligations.
A comprehensive Reserve Bank framework regulates cross border borrowing and lending by Indian residents, prohibiting such transactions except as permitted and authorising the Reserve Bank to allow exceptions. It defines key terms, restricted end-uses and eligible borrowers, and establishes regimes for External Commercial Borrowings, Trade Credit and External Commercial Lending. Schedules set currency, forms, eligibility, maturities, recognised lenders, cost ceilings, limits, security, drawdown/registration, reporting, servicing, hedging and available routes (automatic or approval), with special provisions for individuals, financial institutions and changes in residential status.

Escrow account and deposit rules updated to permit SEBI registered investors' forex accounts and specify NRO and SNRR conditions.
Authorized Dealers may permit SEBI-registered Foreign Portfolio Investors and Foreign Venture Capital Investors to open non-interest bearing foreign currency accounts for investments under the FEMA 2017 transfer/issue regulations; specified minority nationals of Bangladesh and Pakistan with or applying for Long Term Visas may open a single NRO account subject to visa and residential permit conditions; SNRR account tenure is concurrent with contract/operation and capped at seven years except for non-resident investment accounts under FEMA 2017. Schedule 5 prescribes comprehensive terms for INR Escrow Accounts including permitted credits and debits, non-interest status, KYC, repatriation and closure rules.

Competent authority for section 15 FCRA designated as Additional/Principal Secretary (Home) where cancelled registrant's assets are located.
The notification names the Additional Chief Secretary or Principal Secretary (Home) of the concerned State Government or Union Territory as the competent authority for purposes of section 15 of the Foreign Contribution (Regulation) Act, 2010 where the assets of a person whose registration has been cancelled under section 14 are physically located.

Adjudicating authority appointments under FEMA designate officers by monetary jurisdiction to allocate adjudicatory competence.
The Central Government, under section 16 of the Foreign Exchange Management Act, 1999, appoints officers of the Directorate of Enforcement as adjudicating authorities for inquiries under section 13, superseding the 2014 notification. A Table assigns monetary jurisdictional thresholds to specified officer designations so that adjudicatory competence is delegated hierarchically according to the amount or value involved, with the Assistant Director handling the smallest category and senior officers handling larger-value cases.

Addition of Principal Special Director of Enforcement expands recognised enforcement designations under FEMA notification.
Amendment inserts "(aa) Principal Special Director of Enforcement" after "(a) Director of Enforcement" in the notification S.O. 534(E), thereby expanding the list of specified enforcement officers under the Foreign Exchange Management Act; effected by a departmental Gazette notification citing the enabling power under section 36(1) and recording the departmental file reference.

Foreign Contribution restrictions bar FCRA covered entities from seeking RBI office establishment permission; approvals void for misrepresentation.
The amendment bars applicants that are Non Government Organisations, Non Profit Organisations, or foreign government bodies from seeking permission under the FEMA office establishment regulations if they engage in activities covered by the Foreign Contribution (Regulation) Act; such entities must obtain FCRA registration. Form FNC now requires an undertaking not to undertake FCRA covered activities, and any misrepresentation will render RBI approval void ab initio and subject to withdrawal.

Downstream investment notification: new 30 day filing requirements for Form DI and Form InVi after allotment or unit issuance.
Amendments to Regulation 13 delete clause (1) of sub regulation 13.1 and replace clause (11) to require notification of Downstream Investment to the government Secretariat within 30 days, even if capital instruments are not allotted, and to specify investment modality. They require filing Form DI with the central banking authority within 30 days from allotment of capital instruments for downstream investments deemed indirect foreign investment, and require filing Form InVi within 30 days from issue of units by investment vehicles issued to persons resident outside India.

Penalty cap under FCRA: amended rule limits penalties to no more than the value of foreign contribution involved.
The corrigendum substitutes paragraph 2 of the prior notification to provide that the amount of penalty computed for any offence or offences listed in the notification's table shall not be more than the value of the foreign contribution involved, thereby capping monetary sanctions at the quantum of the foreign funds implicated.

Compounding of FCRA offences allows designated officers to accept prescribed penalties before prosecution to settle violations.
The Central Government specifies that the Director or the Deputy Secretary in charge of the administering section may, before prosecution, compound enumerated FCRA offences by accepting prescribed penalties for breaches such as unauthorized transfers, acceptance contrary to registration or prescribed accounts, excess administrative expenditure, non-reporting, non-furnishing of intimation, failure to maintain accounts, and accepting hospitality. The computed penalty for any offence under the table shall not exceed the value of the foreign contribution involved.

Foreign exchange regulation: RBI notifies commencement of provisos to regulation 10 governing transfer and issue of securities by non residents.
RBI, exercising powers under the Foreign Exchange Management Act, notifies commencement of the proviso to sub regulation (1) and the proviso to sub regulation (2) of regulation 10 of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2017, with effect from the stated commencement date, and records the prior publication and amendment history of the principal regulations.

Acquisition of Immovable Property by Non-Residents allowed with mandatory banking-channel funding and nationality-based restrictions.
Non-Resident Indians and Overseas Citizens of India may acquire immovable property in India other than agricultural land, farm houses or plantation property provided consideration is paid only through prescribed banking channels or permitted non-resident accounts; gifting, inheritance and business related acquisitions are regulated with specific documentation, filing and nationality-based restrictions. Transfers to residents and certain transfers to NRIs/OCIs are permitted subject to compliance. Repatriation of sale proceeds is allowed where acquisition and funding complied with foreign exchange law, with limits on residential properties; transactions must be conducted through banking channels and comply with applicable taxes.

Foreign investment rules updated: automatic route expanded, government approval required for certain investing companies, and sectoral conditions tightened.
Amendments revise foreign investment rules: investing companies not registered as NBFCs and core investment companies require prior Government approval, whereas investing companies registered as NBFCs are eligible for 100% automatic route. Joint audit is mandated where a non-resident investor specifies an auditor with an international network. Sectoral adjustments include revised entry routes and conditions for civil aviation and Air India, exclusion of real estate broking from "real estate business" permitting 100% automatic investment, and modified single brand retail sourcing norms with specified initial set-off and committee review for state-of-the-art products.

Cross border merger compliance: resultant companies must meet foreign exchange, investment and time limited divestment and reporting requirements.
Cross border mergers are permitted subject to foreign exchange and foreign investment norms; resultant companies must comply with issuance and transfer rules for securities, treat overseas or Indian offices as branches for transactional purposes, bring transferred borrowings and guarantees into conformity with applicable external borrowing and guarantee norms within a limited compliance period, divest prohibited assets within that period with repatriation of proceeds, maintain time limited merger accounts, follow prescribed valuation rules, ensure pre-merger regulatory compliance, furnish reports to the Reserve Bank, and submit certificates of compliance with the scheme to obtain deemed Reserve Bank approval.