Immovable Property Residents can hold immovable property abroad if acquired as a NR or inherited from a NR No more holding permission for NR holding immovable property in India, if they had got them while as residents or inherited from a resident Certain countries ’ nationals cannot hold property in India and they will not qualify as Persons of India Origin

Immovable Property Non-Indian citizens and non-Indian origin people need permission to buy / hold immovable property in India - even if approved, repatriation will not be allowed on sale by RBI. Almost all provisions of Sec. 31 of FERA have been built into FEMA the Act mentions about the Residential status and does away with Citizenship basis

EXPORTER IMPORTER BENEFICIARY REMITTER TRADE AND PAYMENT Contract Payment as per Contract terms Supplies Goods / Services as per Contract terms

EXPORTERIMPORTER REMITTING BANK COLLECTING BANK SENDS ADVICE OF PAYMENT ACTUAL PAYMENT SETTLEMENT NOSTRO A/C - RB DEBITS NOSTRO A/C CREDITS

FOREX PRINCIPLES CURRENCY ALWAYS MOVES TO THE COUNTRY OF ITS ORIGIN EXPORT, IMPORTS ARE OUTCOME OF THE THEORY OF COMARAIVE ADVANTAGE FOREX TRANSACTIONS SETTLED THROUGH NOSTRO,VOSTRO, LORO ACCOUNTS

Methods of Payments Advance Payment COD system Documentary collection Letter of Credit International Credit Cards

FEMA -INTRODUCTION SHIFT FROM REGULATORY FRAMEWORK DECONTROL REMOVE RIGOURS AND IRRATIONALITIES OF F.E.R.A.

AIM CONSOLIDATE AND AMEND LAW RELATING TO FOREIGN EXCHANGE FACILITATE EXTERNAL TRADE AND PAYMENTS PROMOTE ORDERLY DEVELOPMENT AND MAINTENANCE OF FOREX MARKET IN INDIA

APPLICATION WHOLE OF INDIA ALL BRANCHES,OFFICES AND AGENCIES OUTSIDE INDIA OWNED OR CONTROLED BY A RESIDENT INDIAN ANY CONTRAVENTION COMITTED OUTSIDE INDIA BY SUCH PERSONS

DISTINCTION FERA REGULATED AND CONTROLLED FEMA FACILITATES AND MANAGES EXTERNAL TRADE AND PAYMENTS FERA WAS PROHIBITORY FEMA IS POSTIVE :FREES CURRENT ACCOUNT TRANSACTIONS

FERA /FEMA VIOLATION FERA : CRIMINAL IN NATURE FEMA : CIVIL IN NATURE –ED NOW ONLY INVESTIGATING AGENCY –THE BURDEN OF PROOF NOW LIES ON THE AUTHORITIES –PENALTY : THRICE THE SUM INVOLVED IF QUANTIFIABLE OR –Rs 2 Lacs if not quantifiable

TRANSITION SUNSET PERIOD STARTS TWO YEARS FROM JUNE 01,2000

 The FEMA, is applicable-  To the whole of India.  Any Branch, office and agency, which is situated outside India, but is owned or controlled by a person resident in India.  Broadly speaking FEMA, covers, three different types of categories, and deals differently with them. These categories are: a)Person b)Person Resident In India c)Person Resident Outside India To Whom Act is Applicable ?

 For the purpose of provisions, a person shall include any of the following: 1.An individual 2.A Hindu Undivided family 3.A company 4.A Firm 5.An association of persons or a body of individuals, whether incorporated or not, 6.Every artificial judicial person, not falling within any of the preceding sub clauses, and 7.Any agency, office or branch owned or controlled by such person. A.Person

1.A person who has been residing in India for more than 182 days, in the last financial year. This means if a person has to be assessed, as to whether he is person resident in India, for any offence committed in August 2001, then he should be residing in India for more than 182 days during April 2000 to March Any person or body corporate registered or incorporated in India, or 3.An office, branch or agency in India owned or controlled by a person resident outside India, or 4.An office, branch or agency outside India owned or controlled by a person resident in India. B.Person resident in India

Non-Residents Under FEMA A Resident is defined as one who has stayed in India for > 182 in a financial year; Who doesn ’ t fulfil this condition is a Non-resident. Exceptions: –Those who have gone abroad on employment or –For pursuing business or vocation or –For any other purpose staying abroad indicating circumstances of indefinite stay there