FEMA Practice Manual

FEMA Practice Manual is a comprehensive, structured, and practice-oriented guide to India's cross-border regulatory framework under the Foreign Exchange Management Act, 1999 (FEMA). The book integrates FEMA provisions with RBI rules, regulations, master directions, circulars, practical business transactions, worked examples, diagnostic tables, checklists, comparative charts, FAQs, and references to compounding orders.

This edition captures recent developments in the FEMA framework, including updates relating to guarantees, borrowing and lending, non-debt instruments, authorised persons, export and import regulations, FDI liberalisation, and overseas investment.

The book is useful for:

• Corporate Leaders, CFOs, and Boards
• Chartered Accountants, Company Secretaries, Cost Accountants, and Lawyers
• Bankers and Authorised Dealer (AD) Banks
• Financial Institutions and Compliance Professionals
• Private Equity, Venture Capital, FPI, FVCI, and AIF professionals
• NRIs, OCIs, Foreign Nationals, and Foreign Companies
• Students and Academicians

The Present Publication is the 4th Edition, amended up to 15th July 2026, authored by CA Sudha G. Bhushan.

Key Features:

• Integrated coverage of FEMA law, RBI rules, regulations, master directions, and practical implementation
• Explanation of regulatory rationale and policy logic
• Transaction-linked approach for practical business situations
• Balance-sheet diagnostic approach for identifying FEMA touch-points
• Comparative tables for important distinctions under FEMA
• Worked illustrations and practical examples
• FAQs, checklists, and Standard Operating Procedures
• References to actual compounding orders and FEMA non-compliance cases
• Compliance checkpoints and reporting requirements
• Extensive annexures containing regulations, notifications, forms, SOPs, and master directions
• Insights into cross-border structuring, beneficial ownership, control, and sectoral liberalisation

The book is organised into eight thematic divisions covering:

• Fundamentals – FERA to FEMA, current and capital account transactions, residential status, regulators, currency, bank accounts, and balance-sheet framework
• Foreign Investment – FDI, entry routes, pricing, downstream investment, FPIs, LLPs, FVCIs, offices in India, NRIs, REITs, InvITs, start-ups, and cross-border mergers
• Cross-border Assets – Immovable property in India and outside India, foreign asset disclosure, and undisclosed foreign holdings
• Borrowings – Trade finance, ECBs, deposits, pledge of shares, charges, guarantees, and loans to foreign entities
• IFSC – Investment in and out of International Financial Services Centres and the associated regulatory framework
• Trade Transactions – Exports, imports, realisation and repatriation of proceeds, write-offs, and merchanting trade
• Contravention and Offence – Compounding, Late Submission Fees, penalties, appeals, adjudication, and Enforcement Directorate
• Overseas Investment – ODI, OPI, LRS, overseas investments, restructuring, AD bank responsibilities, and reporting

The book follows a structured approach, moving from concepts and statutory provisions to regulatory rationale, practical application, compliance, and reporting. With its combination of commentary and primary source material, it serves as both a learning resource and a practical desk reference for FEMA professionals and students.