Fema compounding

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pnayal (Querist)
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31 October 2012 please let me know in case of FDI what documents are required to obtain unique identification number from RBI,further co. has made default in allotment of shares to non residents.

Ajay Mishra

Ajay Mishra (Expert)
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31 October 2012 Hi

PENALITIES
FDI is a capital account transaction and thus any violation of FDI regulations are covered by the penal provisions of the FEMA.
(1) If any person violates/contravens any FDI Regulations, by way of breach/non-adherence/non-compliance/contravention of any rule, regulation, notification, press note, press release, circular, direction or order issued by Government of India/FIPB/RBI in exercise of the power under FEMA, he shall, upon adjudication, be liable to a penalty up to trice the sum involved in such contraventions where such amount is quantifiable, or up to two lakh rupees where the amount is not quantifiable and where such contravention is continuing one, further penalty which may extend to five thousand rupees for every day after the first day during ehich contravention continues.
(2) Where a person committing a contravention of any provisions of this Act or of any rules, direction or order made there under is a company, shall be deemed to be guilty of the contravention and shall be liable to be proceeding against and punished accordingly.
(3) No contravention under Foreign Exchange (Compounding Proceeding) Rules 2000, shall be compoundable unless the amount involve in such contravention is quantifiable.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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10 February 2013 The Indian company should have filed form FCGPR in time . since this has not been done ,now the Co. should do it and then go for compounding.

Anuj
Femaquery@gmail.com

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