In a welcome step, RBI has now delegated powers to Regional Offices of RBI to condone the delay in respect of filing , reportin and issues shares under FDI .
In order to facilitate the operational convenience, RBI vide its APDIR Circular No.57 dated December 13, 2011 decided to delegate the powers to the Regional Offices of the Reserve Bank of India to compound the contraventions of FEMA involving;
· delay in reporting of inward remittance
· delay in filing of form FC-GPR after allotment of shares and
· delay in issue of shares beyond 180 days
All other applications (for violations of substantial provisions, ECB norms, etc) may be submitted to the Compounding Authority, Cell for Effective implementation of FEMA (CEFA), Foreign Exchange Department, The Reserve Bank of India, Mumbai.
Further, under the existing process there is no uniformity in submitting the required details with supporting documents along with the compounding application. This results in avoidable correspondence between Reserve Bank and the applicant. To avoid this kind of delay, now RBI has prescribed the information and documents need to be submitted along with application.
This move will help the Company to save considerable cost and time in the compounding process.
In order to facilitate the operational convenience, RBI vide its APDIR Circular No.57 dated December 13, 2011 decided to delegate the powers to the Regional Offices of the Reserve Bank of India to compound the contraventions of FEMA involving;
· delay in reporting of inward remittance
· delay in filing of form FC-GPR after allotment of shares and
· delay in issue of shares beyond 180 days
All other applications (for violations of substantial provisions, ECB norms, etc) may be submitted to the Compounding Authority, Cell for Effective implementation of FEMA (CEFA), Foreign Exchange Department, The Reserve Bank of India, Mumbai.
Further, under the existing process there is no uniformity in submitting the required details with supporting documents along with the compounding application. This results in avoidable correspondence between Reserve Bank and the applicant. To avoid this kind of delay, now RBI has prescribed the information and documents need to be submitted along with application.
This move will help the Company to save considerable cost and time in the compounding process.
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