Section 6 - Capital account transactions - Foreign Exchange Management Act,1999

Extract

Capital account transactions. 6. (1) Subject to the provisions of sub-section (2), any person may sell or draw foreign exchange to or from an authorised person for a capital account transaction. (2) The Reserve Bank may, in consultation with the Central Government, specify- 1 [(a) any class or classes of capital account transactions, involving debt instruments, which are permissible;] (b) the limit up to which foreign exchange shall be admissible for such transaction: 2 [(c) any conditions which may be placed on such transactions;] 3 [Provided that the Reserve Bank or the Central Government shall not impose any restrictions on the drawal of foreign exchange for payment due on account of amortisation of loans or for depreciation of direct investments in the ordinary course of business.] 4 [(2A) The Central Government may, in consultation with the Reserve Bank, prescribe-- (a) any class or classes of capital account transactions, not involving debt instruments, which are permissible; (b) the limit up to which foreign exchange shall be admissible for such transactions; and (c) any conditions which may be placed on such transactions.] 5 [***] (4) A person resident in India may hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside India if such currency, security or property was acquired, held or owned by such person when he was resident outside India or inherited from a person who was resident outside India. (5) A person resident outside India may hold, own, transfer or invest in Indian currency, security or any immovable property situated in India if such currency, security or property was acquired, held or owned by such person when he was resident in India or inherited from a person who was resident in India. (6) Without prejudice to the provisions of this section, the Reserve Bank may, by regulation, prohibit, restrict, or regulate establishment in India of a branch, office or other place of business by a person resident outside India, for carrying on any activity relating to such branch, office or other place of business. 6 [(7) For the purposes of this section, the term debt instruments shall mean, such instruments as may be determined by the Central Government in consultation with the Reserve Bank.] ************ Notes:- 1. Substituted vide THE FINANCE ACT, 2015 w.e.f. 15-10-2019 , before it was read as, (a) any class or classes of capital account transactions which are permissible; 2. Inserted vide THE FINANCE ACT, 2015 w.e.f. 15-10-2019 3. Substituted vide THE FINANCE ACT, 2015 w.e.f. 15-10-2019 , before it was read as, Provided that the Reserve Bank shall not impose any restriction on the drawal of foreign exchange for payments due on account of amortization of loans or for depreciation of direct investments in the ordinary course of business. 4. Inserted vide THE FINANCE ACT, 2015 w.e.f. 15-10-2019 5. Omitted vide THE FINANCE ACT, 2015 w.e.f. 15-10-2019 , before it was read as, (3) Without prejudice to the generality of the provisions of sub-section (2), the Reserve Bank may, by regulations, prohibit, restrict or regulate the following- (a) transfer or issue of any foreign security by a person resident in India; (b) transfer or issue of any security by a person resident outside India; (c) transfer or issue of any security or foreign security by any branch, office or agency in India of a person resident outside India; (d) any borrowing or lending in foreign exchange in whatever form or by whatever name called; (e) any borrowing or lending in rupees in whatever form or by whatever name called between a person resident in India and a person resident outside India; (f) deposits between persons resident in India and persons resident outside India; (g) export, import or holding of currency or currency notes; (h) transfer of immovable property outside India, other than a lease not exceeding five years, by a person resident in India; (i) acquisition or transfer of immovable property in India, other than a lease not exceeding five years, by a person resident outside India; (j) giving of a guarantee or surety in respect of any debt, obligation or other liability incurred- (i) by a person resident in India and owed to a person resident outside India; or (ii) by a person resident outside India. 6. Inserted vide THE FINANCE ACT, 2015 w.e.f. 15-10-2019

FEMA.396(2)/2023-RB - Dated: 16-10-2023 - Foreign Exchange Management - Foreign Exchange Management (Debt Instruments) (Second Amendment) Regulations, 2023.
FEMA.3(R)(3)/2022-RB - Dated: 28-7-2022 - Foreign Exchange Management - Foreign Exchange Management (Borrowing and Lending) (Third Amendment) Regulations, 2022
FEMA.396(1)/2021-RB - Dated: 13-10-2021 - Foreign Exchange Management - Foreign Exchange Management (Debt Instruments) (First Amendment) Regulations, 2021
FEMA 5 (R)/ (3)/2019-RB - Dated: 13-11-2019 - Foreign Exchange Management - Foreign Exchange Management (Deposit) (Third Amendment) Regulations, 2019
FEMA 396/2019-RB - G.S.R . 796 (E) - Dated: 17-10-2019 - Foreign Exchange Management - Foreign Exchange Management (Debt Instruments) Regulations, 2019
S.O. 3722(E) - Dated: 16-10-2019 - Foreign Exchange Management - U/s 6(7) of FEMA 1999, Central Government determines the instruments as debt instruments
FEMA 5 (R) 2 /2019-RB - Dated: 16-7-2019 - Foreign Exchange Management - Foreign Exchange Management (Deposit)(Amendment) Regulations, 2019
FEMA 20 (R) (4) /2019-RB - G.S.R. 312(E) - Dated: 18-4-2019 - Foreign Exchange Management - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) (Third Amendment) Regulations, 2019
01/2019-RB - Dated: 7-3-2019 - Foreign Exchange Management - Foreign Exchange Management (Permissible Capital Account Transactions) (First Amendment) Regulations, 2019
FEMA 6(R)/(1)/2019-RB - G.S.R. 151(E) - Dated: 26-2-2019 - Foreign Exchange Management - Foreign Exchange Management (Export and import of Currency) (Amendment) Regulations, 2019
FEMA 391/2019-RB - G.S.R. 162(E) - Dated: 26-2-2019 - Foreign Exchange Management - Foreign Exchange Management (Permissible Capital Account Transactions)(Amendment) Regulations, 2019
FEMA 3(R)1 /2019-RB - G.S.R. 163(E) - Dated: 26-2-2019 - Foreign Exchange Management - Foreign Exchange Management (Borrowing and lending) (Amendment) Regulations, 2019
FEMA 20(R)5/2019-RB - G.S.R. 164(E) - Dated: 26-2-2019 - Foreign Exchange Management - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) (Amendment) Regulations, 2019
F. No. 1/22/EM/2016 - G.S.R. 78(E) - Dated: 31-1-2019 - Foreign Exchange Management - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Amendment) Regulations, 2019
22 (R)/(2)/2019-RB - Dated: 21-1-2019 - Foreign Exchange Management - Foreign Exchange Management (Establishment in India of a branch office or a liaison office or a project office or any other place of business) (Amendment) Regulations, 2019
F. No. 6/1/2015-ECB - G.S.R. 1213(E) - Dated: 17-12-2018 - Foreign Exchange Management - Foreign Exchange Management (Borrowing and Lending) Regulations, 2018
FEMA 5 (R)(1)/2018-RB - Dated: 9-11-2018 - Foreign Exchange Management - Foreign Exchange Management (Deposit) (Amendment) Regulations, 2018
22(R) (1)/2018-RB - Dated: 31-8-2018 - Foreign Exchange Management - Foreign Exchange Management (Establishment in India of a branch office or a liaison office or a project office or any other place of business) (Amendment) Regulations, 2018
20(R) (3)/2018-RB - Dated: 30-8-2018 - Foreign Exchange Management - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Second Amendment) Regulations, 2018
20(R)(2)/2018-RB - Dated: 1-6-2018 - Foreign Exchange Management - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2018
21(R)/2018-RB - G.S.R. 280(E) - Dated: 26-3-2018 - Foreign Exchange Management - Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2018
20(R) (1)/2018-RB - Dated: 26-3-2018 - Foreign Exchange Management - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Amendment) Regulations, 2018
FEMA.389/2018 - Dated: 20-3-2018 - Foreign Exchange Management - Foreign Exchange Management (Cross Border Merger) Regulations, 2018
369/2017-RB - Dated: 14-11-2017 - Foreign Exchange Management - Foreign Exchange Management (Transfer or Issue of any Foreign Security) (Amendment) Regulations, 2017
20(R)/ 2017-RB - Dated: 7-11-2017 - Foreign Exchange Management - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2017
387/2017-RB - Dated: 9-3-2017 - Foreign Exchange Management - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Fourth Amendment) Regulations, 2017
383/2017-RB - Dated: 10-1-2017 - Foreign Exchange Management - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Amendment) Regulations, 2017
377/ 2016-RB - Dated: 10-1-2017 - Foreign Exchange Management - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Fifteenth Amendment) Regulations, 2016
382/ 2016-RB - Dated: 2-1-2017 - Foreign Exchange Management - Foreign Exchange Management (Transfer or Issue of any Foreign Security) (Second Amendment) Regulations, 2016
381/2016-RB - Dated: 7-12-2016 - Foreign Exchange Management - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Eighteenth Amendment) Regulations, 2016
379/2016-RB - Dated: 4-11-2016 - Foreign Exchange Management - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Sixteenth Amendment) Regulations, 2016
372/2016-RB - Dated: 27-10-2016 - Foreign Exchange Management - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Tenth Amendment) Regulations, 2016
374/2016-RB - Dated: 24-10-2016 - Foreign Exchange Management - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Twelfth Amendment) Regulations, 2016
373/ 2016-RB - Dated: 24-10-2016 - Foreign Exchange Management - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Eleventh Amendment) Regulations, 2016
375/ 2016-RB - Dated: 9-9-2016 - Foreign Exchange Management - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Thirteenth Amendment) Regulations, 2016
368/2016-RB - Dated: 20-5-2016 - Foreign Exchange Management - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Seventh Amendment) Regulations, 2016
363/2016-RB - Dated: 28-4-2016 - Foreign Exchange Management - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Third Amendment) Regulations, 2016
FEMA 22(R) /RB-2016] - Dated: 31-3-2016 - Foreign Exchange Management - Foreign Exchange Management (Establishment in India of a branch office or a liaison office or a project office or any other place of business) Regulations, 2016
366/2016 - Dated: 30-3-2016 - Foreign Exchange Management - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Fifth Amendment) Regulations, 2016
362/2016-RB - Dated: 15-2-2016 - Foreign Exchange Management - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Second Amendment) Regulations, 2016
361/2016-RB - Dated: 15-2-2016 - Foreign Exchange Management - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Amendment) Regulations, 2016
7(R)/2015-RB - Dated: 21-1-2016 - Foreign Exchange Management - Foreign Exchange Management (Acquisition and Transfer of Immovable Property outside India) Regulations, 2015
10(R)/2015-RB - Dated: 21-1-2016 - Foreign Exchange Management - Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) Regulations, 2015 ((Amended upto June 01, 2016)
6(R)/RB-2015 - Dated: 29-12-2015 - Foreign Exchange Management - Foreign Exchange Management (Export and import of currency) Regulations, 2015
360/2015-RB - Dated: 17-12-2015 - Foreign Exchange Management - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Thirteenth Amendment) Regulations, 2015
359/2015-RB - Dated: 2-12-2015 - Foreign Exchange Management - Foreign Exchange Management (Transfer or Issue of Any Foreign Security) (Amendment) Regulations, 2015
358/2015-RB - Dated: 2-12-2015 - Foreign Exchange Management - Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) (Amendment) Regulations, 2015
345/2015-RB - Dated: 16-11-2015 - Foreign Exchange Management - Foreign Exchange Management (Permissible Capital Account Transactions) (Fourth Amendment) Regulations, 2015
354/2015-RB - Dated: 30-10-2015 - Foreign Exchange Management - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Tenth Amendment) Regulations, 2015
353/2015-RB - Dated: 6-10-2015 - Foreign Exchange Management - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Ninth Amendment) Regulations, 2015
351/2015-RB - Dated: 30-9-2015 - Foreign Exchange Management - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Seventh Amendment) Regulations, 2015
59/2015 - Dated: 6-7-2015 - Income Tax - Authorised entities under Section 10(15)(iv)(h) of the Income Tax Act, 1961 - To issue tax-free, secured, redeemable, non-convertible bonds during the f.y. 2015-16.
344/2015-RB - Dated: 11-6-2015 - Foreign Exchange Management - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Fourth Amendment) Regulations, 2015
341/2015-RB - Dated: 26-5-2015 - Foreign Exchange Management - Drawal limit of USD 125000 increased to USD 250,000 per financial year Foreign Exchange Management (Permissible Capital Account Transactions) (Third Amendment) Regulations, 2015
340/2015-RB - Dated: 3-3-2015 - Foreign Exchange Management - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) (Third Amendment) Regulations, 2015
338/2015-RB - Dated: 2-3-2015 - Foreign Exchange Management - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Second Amendment) Regulations, 2015
337/2015-RB - Dated: 2-3-2015 - Foreign Exchange Management - Foreign Exchange Management (Permissible Capital Account Transactions) (Second Amendment) Regulations, 2015
335/2015-RB - Dated: 4-2-2015 - Foreign Exchange Management - Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) (Amendment) Regulations, 2015.
334/2015-RB - Dated: 9-1-2015 - Foreign Exchange Management - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Amendment) Regulations, 2015
61/2013 - Dated: 8-8-2013 - Income Tax - During The Financial Year 2013-14 - Tax-Free, Secured, Redeemable, Non-Convertible Bonds
46/2012 - Dated: 6-11-2012 - Income Tax - During The Financial Year 2012-13 - Tax-Free, Secured, Redeemable, Non-Convertible Bonds
S.O. 1156(E) - Dated: 26-12-2000 - Foreign Exchange Management - Authorization to officers of the Customs and Central Excise, not below the rank of Deputy Commissioner and officers of the Directorate General of Revenue Intelligence not below the rank of Deputy Director, to exercise the powers conferred under the FEMA Act.
S.O. 1155 (E) - Dated: 26-12-2000 - Foreign Exchange Management - Appointment of officers as adjudicating authorities under FEMA Act