Penalty for non refunding Share application money

please suggest me penalty for the above as per FEMA

Dear Pavithra,

No provision of penalty is there in the FEMA.But company which had received such amount has not reported the amount received from the NRI then in that case compounding shall be attracted in terms of section 13 read alongwith section 15 of FEMA Act.

Under FEMA Regulation 6months time is given to allot the shares.If that is not the case then company has to return the money through the Authorised Dealer or bank.

regards,