“ 2nd Workshop on Foreign Exchange Management Act (FEMA) ”
From concepts to expertise……

Coverage in Session

Inaugural Session

Introduction to Foreign Exchange Management Act, 1999

• Important definitions and general approach to FEMA
• Regulations
• Rules
• Press Releases, Press Notes and Clarifications
• Circulars
• Notifications
• Master Circulars
• FAQs
• FCRA
• Regulating Agencies, Authorised Dealer, RBI
• Consolidated FDI Policy

Shri Himansu S Mohanty

Ex RBI Official & FEMA Consultant

Executive Director – Price Waterhouse Coopers

Remittances and Investment facilities for Non
Residents Individual [NRI, OCI (PIO), Foreign National, FPIs] including:

• Basic Fundamentals relating to Residential Status
• Concept of Person Resident in India, Person Resident Outside India, NR, NRI, OCI, Resident Indian Citizen
• Types of Accounts including Permissible Debits and Credits (FCNR, NRE, NRO, Resident Foreign Currency Account)
• Remittance Facilities for NRIs
• Immovable Properties in India (Implication of The Benami Transactions (Prohibition) Act, 1988 for acquisition in the name of Relatives)
• Deposit Regulations in India
• Stock Market (Foreign Portfolio Investment)
• Investment in Unlisted Shares & Securities
• Other Assets permitted for Investment.
• Prohibited Investments
• Investment Options on Non-Repatriation Basis (Special Dispensation) including Investment in Firms, or Proprietorship Concerns of NRI / OCI
• Lending by NBFCs to Non-Residents against Shares, Securities, and Immovable Properties
• Lending to Relatives
• Borrowing from Relatives
• Gift to Relatives / Others
• Gift from Relatives / Others
• Acquisition of Foreign Securities by way of Gift or Inheritance
• Acquisition of Shares or Interest under Employee Stock Ownership Plan (ESOP), or Employee Benefits Scheme or Sweat Equity Shares
• Obligation of Returning Indians (NRI / OCI)

Open House Query Session

Session Chairman

Shri Himansu S Mohanty

Ex RBI Official & FEMA Consultant

Executive Director – Price Waterhouse Coopers

Speaker

CA Vinod Jain

Chairman

INMACS

International Debt Funding including ECB

• External Commercial Borrowings (ECB)
  • Eligible Borrowers
  • Recognised Lenders, Permitted Countries,
  • Conditions for Foreign Equity Holders
  • Limit and Leverage (Liability / Equity Ratio)
  • Minimum Average Maturity Period
  • All-in-Cost Ceiling, Benchmark Rate & Spread
  • End Uses (Negative List)
  • Mandatory Hedging
  • Prior Approval & Regular Reporting
  • Conversion of ECB to Equity
  • Securities Permitted for raising ECB
  • Special Dispensation for Startups
• Trade Credit Framework
  • Buyers Credit & Suppliers Credit
  • Security for Trade Credit
• Structured Obligations
  • Non-Resident Guarantee for Domestic Fund Based and Non-Fund Based Facilities
  • Facility for Credit Enhancement
• Private Placement of Listed / Unlisted Foreign Currency Debentures

CA Hinesh Doshi

Founder

Hinesh R Doshi & Co. LLP

Mumbai

Tea with Snacks (5:45pm - 6:15pm)

Foreign Direct Investment (FDI) – I

• Key Terms
  • Eligible FDI Investor (incl. Eligible Transferee)
  • Investor with Government Approval (incl. entities / citizens / individuals situated in countries sharing Land Borders)
  • Equity Instrument, Partly Paid Shares, Share Warrants, Deferred Payment Considerations
  • Convertible Notes by Indian Start-Up Company
  • FCMC Debentures, FCMC Preference Shares
  • Shares for Non- cash consideration
  • Non-Debt Instruments
  • E-Commerce Entity
    • Inventory Based Model
    • Marketplace Model
  • Entry routes, Sectoral Caps in India
    • Permitted Sectors, Persons
    • Prohibited Sectors, Persons
    • Foreign Investment in Investing Companies
  • Preferential Issue, Rights Issue (incl. Renunciations) of Listed / Unlisted Equity Shares, Securities and other Instruments.
  • Issuance of ADR / GDR & Other Instruments.
  • Issue / Transfer of Eligible Instruments through a Foreign Depository
  • Indian Depository Receipts issued by Foreign Corporates in India
  • Foreign Direct Investment in LLPs

CA Puneeta Chugh Mayall

Partner

KPMG India

CA Sandipan Basu

Associate Director

KPMG India

Foreign Direct Investment (FDI) – II

• Downstream Investments (Owned & Controlled)
  • Definition
    • Downstream Investment
    • Indirect Foreign Investment
    • Total Foreign Investment
  • Strategic Downstream Investment
  • Prohibited Indirect Foreign Investment
  • Conditions for Downstream Investment that is treated as Indirect Foreign Investment for Investee Entity
  • Downstream Investment under Corporate Debt Restructuring (CDR) Mechanism
  • Guidelines of Calculation of Total Foreign Investment in Indian Companies.
  • Conditions for exit
  • Applicability of Downstream Investment Guidelines (DIG)
  • Responsibility for Compliance of DIG
• Investment by Foreign Venture Capital Investor
• Foreign Institutional Investment (FII)
• Issuance of ESOPs / Sweat Equity Shares by Indian Company to Non-Residents
• Procedure for Automatic Route
• Procedure for Government Approval Route
• Role of Cabinet Committee of Economic Affairs (CCEA) in approval of FDI
• Investment in Investment Vehicle
  • REITs, InvITs, etc
  • AIFs & Venture Capital Fund
• Special Issues & Conditions for FDI in Specific Sectors including FDI Linked Performance Conditions
  • Agriculture & Plantation
  • Manufacturing Sector – Special Liberties
  • Defense Sector
  • FM Broadcasting
  • News & Current Affairs & Print Media
  • Construction Development, Township, Housing
  • Trading
    • Cash and Carry Wholesale Trading
    • Wholesale Trading
    • E-Commerce Activity
    • Single Brand Product Retailing
    • Multiple Brand Retail Trading
• Financial Services

Session Chairman

CA Amit Luthra

Managing Partner – Luthra & Luthra, CA

New Delhi

Expert Speaker

Adv Harish Kumar

Partner – Luthra & Luthra, Law

New Delhi

Foreign Direct Investment (FDI) – III

• Purchase and Sale of Listed / Unlisted Equity Shares, Securities and other Instruments.
• Transfer from a Resident to a person Resident outside India where Investee Company is in a Financial Sector.
• Transfer by way of Pledge
• Transfers by Overseas Corporate Bodies
• Opening of Escrow Account for Investment Transactions
• Merger / Demerger / Amalgamation of Indian Companies – Issue of shares to Non Residents
• Trusts
• Preferred destinations for investment in India

CS Atul Mittal

Partner

Deloitte India

India - US corporate structure and Legal Issues

Adv Anil Advani

Founder & Managing Partner

Inventus Law, PC

San Fransisco, CA, USA

Coverage in Session

Brief Overview, Permitted activities, Procedures, RBI Prior Approval, MCA Registration, Regular Compliances, Do’s & Don’ts in respect of

• - Establishment of Place of Business in India:
  • Liaison Office
  • Representative Office
  • Project Office
  • Branch Office
• - Setting up of Offices Abroad & Acquisition of Immovable Property for Overseas Offices.
  • Trading Offices
  • Non-Trading Offices Representative Office

CA. Vandana Sagar

Director, Regulatory – Price Waterhouse & Co LLP

New Delhi

Trade Exports & Imports (incl. Impact of Foreign Trade Policy)

• Export of Goods, Software & Services
  • Realization and Repatriation of Proceeds
  • Receipt through Online Payment Gateways
  • International Trade Settlement in Indian Rupees
  • Foreign Currency Account outside India
  • Exchange Earners Foreign Account (EEFC A/c)
  • Counter Trade Arrangement
  • Export to Neighboring Countries by Road, Rail or River
  • Forfeiting & Export Factoring
  • Project Exports & Service Exports
  • Export of Goods on Lease, Hire
  • Export on Elongated Credit Terms, Deferred Payment Arrangement
  • Export of Currency
  • EDF / Softex Procedure
  • Receipt of Advance against Exports
  • Extension of Time for Delay in Export Realization
  • Write off of Unrealized Export Bills.
  • Set Off of Export Receivables against Import
  • Update of EDPMS Maintained by Bank
  • Inquiry, Investigation & Prosecution by Enforcement Directorate
• Export of Goods, Software & Services
  • Time Limit for Settlement of Import Payments
  • Extension of Time
  • Advance Remittance for Import of Goods, Services & Software
  • Evidence of Import
  • Knocking off Import Transactions with Payment Settlement with Authorized Dealer
  • Inquiry, Investigation & Prosecution by Enforcement Directorate
• Third Party Payment for Export / Import Transactions

Shri Harjeet Singh

Head – Subject Matter Expert - Trade Finance & Related Products

ICICI Bank Limited

Remittances by Residents including Liberalized Remittance Scheme (LRS)

• Annual Limit
• Permitted Usage
• Overseas Investment (ODI & Overseas Portfolio Investment)
• Opening and Maintenance of Overseas Bank Account (incl. Refund of Unused Funds)
• Acquisition or Transfer of Immovable Property Outside India
• Documentation by Remitter
• Specific Prohibited Usage
• Withholding Tax on LRS

CA Sunil Jain

Partner – Kumar Chopra & Associates

New Delhi

Prevention of Money Laundering Act (PMLA)

• What is Money Laundering
• Consequences of Money Laundering
• Stages of Money Laundering
• Reporting Entity
• Penal Consequences of Money Laundering
• Obligations under PMLA
• Suspicious Transactions under PMLA
• Precautions Needed
• Scheduled Crimes covered under PMLA Law
• Role of Enforcement Directorate
• Arrest, Punishment & Penalties
• Confiscation of Assets & Property
• Impact on Professionals under PMLA

Adv K C Mittal

Partner – K C Mittal & Associates

Past President, Delhi High Court Bar Association
Former Chairman Bar Council of Delhi

Overseas Direct Investment – I

• Key Terms – Concept & Definitions
  • Debt Instrument
  • Non-Debt Instrument
  • Foreign Entity
  • Strategic Sector
  • Control
  • Indian Entity
  • Subsidiary / Step Down Subsidiary
  • Overseas Direct Investment
  • Overseas Investment
  • Overseas Portfolio Investment
  • Equity Capital
  • Designated Bank (AD Bank)
  • Financial Service Regulator
  • Last Audited Balance Sheet
  • Sweat Equity Shares
  • Financial Commitment (Equity, Debt, Securities & Guarantees)
• Cases of Non-Applicability of ODI Rules and Regulations in Certain Cases
• Manner of Making Overseas Direct Investment by an Indian Entity in LLC, Inc, Pte, Pty, SA etc
  • Limits of Financial Commitment in Automatic Route
  • Debt Investment – Mandatory Interest
  • Cases requiring Mandatory Valuation and Permitted Valuers
  • Swap of Shares
  • Permitted Currencies for Overseas Investment
  • Countries in which Foreign Investment is not permitted.
• Manner of Making Overseas Portfolio Investment by an Indian Entity
• Manner of Making Overseas Investment by an Resident Individuals
• Financial Commitments by an Indian Entity – Specific Provisions
  • By way of Pledge or Charge
  • Remittance towards Pre-Incorporation Expenses
  • Limit of Financial Commitments
  • Utilization of Balances in
    • EEFC A/c
    • Money raised by way of ADR / GDR, and
    • Proceeds from ECB
  • ODI in Financial Services
  • Obligation of Indian Entity / Resident Individuals
  • Transfer or Liquidation of Overseas Investment
  • Restructuring of Overseas Direct Investment
  • Opening of Foreign Currency Account Abroad by Indian Entity
  • Obligations of Persons Resident in India
  • Reporting Requirements
  • Restriction on Further Financial Commitments or Transfer
  • Restrictions and Prohibitions in Overseas Investment

CA Harshal Bhuta

Partner

P. R. Bhuta & Co.

Mumbai

Tea with Snacks (5:30pm - 6:00pm)

Overseas Direct Investment –II

• Acquisition Funding for Overseas Investment including Optional Structures and Case Studies relating to Various modes of Acquisition Funding in respect of Investment by Corporate and Individual Acquirer
• Security Creation
• Creation of SPV or NBFC / Investment Company outside India

Adv. Akshita Agrawal

Partner – Shardul Amarchand Mangaldas.

Overseas Direct Investment – III

• No Objection Certificate from Lender Bank / Regulatory Body / Investigative Agency
• Right Issue and Bonus Shares
• Acquisition of Foreign Entity through Bidding and Tender Procedure
• ODI in Start-Ups
• Investment in India by Foreign Entity having ODI from India
• Mode of Payment for Overseas Investment
• Acquisition or Transfer by way of Deferred Payments
• Overseas Investment
  • by Resident Individuals
  • by a person resident in India other than an Indian Entity or Resident Individual
• Prohibited Overseas Investment
• General Permission to Persons Resident in India for Purchase or Acquisition of Foreign Securities
• Creation of Private Trust (Outside India)
• Structuring of Tax Efficient Overseas Investments
• Practical Aspects

CA Vinod Jain

Chairman – INMACS

Adv (CS) Chhavi Jain

Senior Counsel – INMACS Law Offices

Pricing Guidelines, Norms (Inward / Outward) / Valuation

• Issue of Equity Instruments
• Transfer of Equity Instruments
• Swap of Equity Instruments
• Subscription to MOA
• Partly Paid Shares
• Share Warrants
• Investment in LLP
• Transfer of Capital Contribution / Profit share of an LLP
• Non-Applicability of Pricing Guidelines
• Convertible Instruments & Securities
• Redeemable Instruments & Securities

CA Anil Sharma

Partner

A Sharma & Co. CAs

CA Vaibhav Jain

Director - Valuations

INMACS - Registered Valuer & Cat 1 Merchant Banker

Compounding of Offences, Late Filing Fee, Condonation

• Compoundable Offences
• Application for Compounding
• Adjudication of Offenses, Appeals
• Enforcement Directorate role and practical aspects

CA Deepender Kumar

Partner – Deepender Anil & Associates

New Delhi

Valedictory Session

• Compoundable Offences
• Application for Compounding
• Adjudication of Offenses, Appeals
• Enforcement Directorate role and practical aspects

Convenor

Co-Convenor

CA Vijay Gupta
+91 98100 83373

CA Sunil Jain
+91 98101 40664

Adv Rajiv Kohli
+91 98734 30075

CA Amit Jain
+91 99109 90907

Advisor

Member

Dr. N C Maheshwari
+91 98100 11589

CA Rakesh Jain
+91 98100 71440

Rajesh Mittal
+91 99993 80808

Aastha Jain
+91 99999 03356

With Best Regards,
For AICAS, CFO World & FICAF

CA Vinod Jain
Founder
+91 98110 40004

CA Pramod Kapur
President
+91 98107 30568

CA. Anil Sharma
Vice President
+91 98113 20203

CA Vaibhav Jain
General Secretary
+91 97113 10004