RBI – FEMA:
RBI has made amendments to the existing regulations relating the Acquisition and Transfer of Immovable Property outside India and notified the Foreign Exchange Management (Acquisition and Transfer of Immovable Property outside India) Regulations, 2015. The old regulations have been repealed and replaced by the new Regulations. In terms of these Regulations, acquisition or transfer of any immovable property outside India by a person resident in India would require prior approval of Reserve Bank except in the cases where property held outside India by a foreign citizen resident in India; property acquired by a person on or before 8th July, 1947 and held with the permission of Reserve Bank; property acquired by way of gift or inheritance from: property purchased out of funds held in Resident Foreign Currency (RFC) account; property acquired jointly with a relative who is a person resident outside India; property acquired by way of inheritance or gift from a person resident in India. Further, an Indian company having overseas offices may acquire immovable property outside India for its business and residential purposes provided total remittances do not exceed the prescribed limits. The new regulations have been notified and shall come into force with effect from January 21, 2016.
RBI – FEMA:
The RBI has revised nine regulations issued under the Foreign Exchange Management Act, 1999 (FEMA). Consequently, the respective original notifications and subsequent amendments stand repealed. For easy identification, revised regulations will carry the same numbers as in the old regulations with a suffix ‘(R)’ along with the year in which they are published. The Foreign Exchange Management Act enacted in 1999 with 25 original notifications came into force with effect from June 1, 2000. Over the years the regulations framed under FEMA have had over 330 amendments. Keeping in view the objective of promoting ease of doing business, a need was felt to consolidate the regulations and rationalise them in the light of evolving business environment and changing practices in cross-border transactions relating to external trade and payments. The revised regulations come into force on the date of their publication in the Gazette of India as indicated in the respective regulations.
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