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FEMA & Foreign Exchange Advisory
Foreign Exchange Management Act compliance for inbound/outbound transactions and NRI investments
The Foreign Exchange Management Act 1999 (FEMA) and the rules and regulations framed under it by the Reserve Bank of India govern every cross-border payment, equity issuance, overseas investment, and external commercial borrowing by Indian and foreign entities. Violations — even inadvertent ones — can attract compounding proceedings before the RBI and significant penalties. RevLaw's FEMA practice advises foreign companies, overseas Indians, and NRIs on the full spectrum of foreign exchange compliance, from initial structuring of inbound FDI to overseas direct investments (ODI), external commercial borrowings (ECB), and the compounding of past contraventions.
What We Do
Inbound FDI Compliance & Reporting
Advising on pricing guidelines (fair market value under DCF or comparable companies methodology), filing FC-GPR and FC-TRS returns with the RBI through the FIRMS portal, and ongoing compliance under FEMA (Non-Debt Instruments) Rules 2019.
Overseas Direct Investment (ODI)
Advising Indian companies on outbound investment under the ODI framework: financial commitments overseas, creation of JDRs, reporting requirements, and compliance with RBI directions on round-tripping.
External Commercial Borrowings (ECB)
Structuring ECB transactions under the ECB Framework — all-in cost ceilings, eligible borrowers/lenders, end-use restrictions, minimum average maturity, and filing of Form ECB-2 returns.
NRI & PIO Investments
Advising non-resident Indians and Persons of Indian Origin on repatriation of income, investment in Indian property and securities on NRO/NRE accounts, and FEMA implications of inheritance and gifts.
Compounding of FEMA Contraventions
Filing compounding applications before the Reserve Bank of India (and the Adjudicating Authority where applicable) for past FEMA violations — delayed FC-GPR filings, pricing violations, unreported foreign assets — and representing clients through the compounding process.
Liaison, Branch & Project Offices
Establishing and maintaining RBI-licensed Liaison Offices, Branch Offices, and Project Offices for foreign companies operating in India — from initial application through annual activity certificates.
Key Legal Frameworks
FEMA 1999
The primary statute governing foreign exchange transactions, with powers delegated to RBI to issue regulations.
FEMA (NDI) Rules 2019
The Non-Debt Instruments Rules governing equity investment by non-residents in Indian entities.
ECB Framework (RBI Master Directions)
RBI's consolidated master directions on external commercial borrowings, trade credit, and structured obligations.
RBI Compounding Regulations 2007
Govern the compounding of FEMA contraventions before the RBI — the process, authority, and quantum of penalty.
Why RevLaw for FEMA & Foreign Exchange Advisory
- Specialist FEMA practitioners with direct experience in RBI compounding proceedings
- Hands-on advisory across the full FEMA compliance lifecycle — not just one-off opinions
- Strong familiarity with the FIRMS portal, FLAIR system, and RBI's compliance reporting requirements
- Practical, cost-conscious approach to compounding: we assess contraventions before filing
- Seamless coordination with your tax and corporate teams on cross-border transaction structuring
Discuss a FEMA Matter
Initial calls are without obligation. We respond within 48 hours.