Regulatory Framework · India
FEMA Lawyer in Delhi
FEMA non-compliance compounds. Expert advice doesn't.
200+
FEMA Transactions
50+
Compounding Applications
95%
Compounding Success Rate
Understanding the Regulatory Framework
The Foreign Exchange Management Act 1999 governs all foreign exchange transactions in India — inbound investments, outbound investments, external commercial borrowings, trade transactions, and remittances. FEMA violations are civil offences but the penalties compound rapidly and enforcement by the Enforcement Directorate is aggressive for serious breaches. Corpus Juris Legal's FEMA practice covers transaction advisory, RBI compliance filings, and representation in FEMA investigations and compounding proceedings before RBI.
FDI and ODI (Overseas Direct Investment) transaction structuring
External Commercial Borrowing (ECB) documentation and RBI compliance
FEMA compounding applications before RBI
Enforcement Directorate (ED) investigation representation
Cross-border remittance advisory — LRS, business payments, royalties
FEMA violation audit and voluntary disclosure
Frequently Asked Questions
What is the penalty for FEMA violations in India?+
Civil penalties under FEMA can be up to three times the amount involved in the contravention. For continuing violations, a further penalty of ₹5,000 per day may be imposed. In serious cases, the Enforcement Directorate can initiate proceedings for adjudication before the Adjudicating Authority under FEMA.
What is FEMA compounding and when should it be used?+
Compounding is a mechanism by which a FEMA violator voluntarily discloses the contravention and pays a compounding fee to regularise the violation. It is available for most FEMA violations and provides finality — once compounded, the violation cannot be prosecuted again. It is generally advisable to compound rather than face adjudication.
What are ODI requirements for an Indian company investing abroad?+
Indian companies can invest abroad under the Overseas Direct Investment (ODI) framework. Key requirements: total ODI cannot exceed 400% of net worth, investment must be in the overseas entity's core business, RBI reporting in Form ODI is mandatory, and annual performance reports must be filed.
Get FEMA Compliance Advice
Speak directly with a partner. No juniors, no call centres, no runaround.