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FEMA STUDY CIRCLE MEETING

April 11, 2019 @ 6:00 pm - 8:00 pm

INTERNATIONAL TAXATION COMMITTEE
Chairman : Rajesh P. Shah
Co-Chairman : Rajesh L. Shah
Vice-Chairman : Kartik Badiani
Convenors : Rakesh Upadhyaya, Shreyas Shah, Harshal Bhuta

Revised External Commercial Borrowings (ECB) regulations were notified by RBI on December 17, 2018 [Notification No. FEMA 3(R)/2018-RB]. The new ECB framework based on the aforesaid regulation was issued on January 16, 2019 vide A. P. (DIR Series) Circular No. 17 whereas the Trade Credit framework was issued on March 13, 2019.

Foreign Exchange Management (Borrowing and Lending) Regulations, 2018 replaces erstwhile (a) Foreign Exchange Management (Borrowing and Lending in Rupees) Regulations, 2000; (b) Foreign Exchange Management (Borrowing and Lending in Foreign Exchange) Regulations, 2000 and (c) Regulation 21 Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004 viz. FCCB & FCEB.

Some common questions arising from issue of new notification are:
• Who can borrow ECB?
• Is LLP permitted to avail ECB?
• Who can lend ECB?
• Are regulations dealing with Rupee denominated ECB any different?
• Is hedging of ECB mandatory?
• What is the meaning of ‘real estate activity’?
• What are the restricted end-uses?
• Are the restricted end uses different for Rupee denominated ECB vis-à-vis ECB in forex?
• Are the restricted end uses different for Rupee denominated borrowing vis-à-vis lending in rupees?
• How does one compute Minimum Average Maturity period?
• Can ECB be converted into Equity and vice versa? What are the terms and conditions?
• Can resident individual lend in forex to a non-resident friend outside India and vice versa?
• What happens upon change in residential status of borrower / lender?
• Is an Indian company permitted to borrow from NRI?

With a view to understand revised regulations on ECB and Trade Credit and gain perspective on above questions along with many more, we have arranged this meeting for the benefit of the members.

Day & Date : Thursday, 11th April, 2019
Time : 6.00 pm to 8.00 pm
Venue : CTC Conference Room, 3, Rewa Chambers, Gr. Floor, 31, New Marine Lines, Mumbai – 400 020.
Subject : Revised ECB Regulations
Speaker : CA Niki Shah

We request you to please mark your diaries and make it convenient to attend and participate actively in this study. Speaker will discuss various practical examples and her vast experience of FEMA on other aspects wherever reference may be required from other notifications and circulars/master directions

Please note that, henceforth all notices for meetings of FEMA Study Circle will be sent via email only. If any member wishes to receive notice in hard copy, they may intimate the same to any of the conveners.

Kindly ensure to pay annual FEMA study circle fees of Rs. 1,770/- (inclusive of GST) before attending this meeting. If you have not paid the annual membership fees, you can also attend this session by paying Rs. 200/- (inclusive of GST) on the spot at CTC office.

Details

Date:
April 11, 2019
Time:
6:00 pm - 8:00 pm