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FAQs on Purchase of Immovable Property outside India by Resident Individuals

These FAQs attempt to put in place the common queries that users have on the subject in easy to understand language. However, for conducting a transaction, the Foreign Exchange Management Act, 1999 (FEMA) and the regulations made or directions issued thereunder may be referred to.

The relevant principal regulations are the Foreign Exchange Management (Acquisition and transfer of immovable property outside India) Regulations, 2015 issued vide Notification No. FEMA 7(R)/2015-RB dated January 21, 2016. The directions issued are consolidated in Part I of the Master Direction No 12 on Acquisition and Transfer of Immovable Property under Foreign Exchange Management Act, 1999.

Ques. #1: Can a resident continue to hold immovable property outside India which was acquired by him when he was a non-resident?

FAQs on Purchase of Immovable Property in India by Non-Resident Individuals

These FAQs attempt to put in place the common queries that users have on the subject in easy to understand language. However, for conducting a transaction, the Foreign Exchange Management Act, 1999 (FEMA) and the regulations made or directions issued thereunder may be referred to.

The relevant principal regulations are the Foreign Exchange Management (Acquisition and transfer of immovable property in India) Regulations, 2018 issued vide Notification No. FEMA 21(R)/2018-RB dated March 26, 2018. The directions issued are consolidated in Part II of the Master Direction No 12 on Acquisition and Transfer of Immovable Property under Foreign Exchange Management Act, 1999.

Ques. #1: How can a Non-resident Indian (NRI) and an Overseas Citizen of India (OCI) acquire immovable property in India?

India’s Foreign Trade: May 2019 (Data/Stats on Exports & Imports)

June 14, 2019: The data on foreign trade of India for the month of May-2019 as released by the Ministry of Commerce & Industry, Department of Commerce, Economic Division, is presented hereunder.

India’s overall exports (Merchandise and Services combined) in April-May 2019-20* are estimated to be USD 92.33 billion, exhibiting a positive growth of 4.32 per cent over the same period last year.

Overall imports in April-May 2019-20* are estimated to be USD 109.75 billion, exhibiting a positive growth of 5.30 per cent over the same period last year.

Security Measures for ATMs: RBI Notification to All Banks

RBI Notification No. DCM (Plg.)No.2968/10.25.007/2018-19 dated June 14, 2019 (addressed to The Chairman / MD / CEO, All Banks), regarding "Security Measures for ATMs", reads as follows —

1. As stated in para 15 of the monetary policy statement dated October 04, 2016, the Bank had constituted a Committee on Currency Movement (CCM) [Chair: Shri D.K. Mohanty, Executive Director] to review the entire gamut of security of treasure in transit.

The recommendations of the Committee have been examined and certain measures aimed at mitigating risks in ATM operations and enhancing security, are listed below:

 a. All ATMs shall be operated for cash replenishment only with digital One Time Combination (OTC) locks.

Index Numbers of Wholesale Price (WPI) in India for May 2019 stands at 121.2 (prov.)

June 14, 2019: The official Wholesale Price Index for 'All Commodities' (Base: 2011-12=100) for the month of May, 2019 rose by 0.2 percent to 121.2 (provisional) from 120.9 (provisional) for the previous month. (As released by the Office of Economic Adviser, Ministry of Commerce & Industry, New Delhi.)

INFLATION

The annual rate of inflation, based on monthly WPI, stood at 2.45% (provisional) for the month of May, 2019 (over May, 2018) as compared to 3.07% (provisional) for the previous month and 4.78% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 1.08% compared to a build up rate of 1.72% in the corresponding period of the previous year.

Inflation for important commodities / commodity groups is indicated in Annex-1 and Annex-II. The movement of the index for the various commodity group is summarized below:-

[RBI] Data on India’s International Trade in Services for April 2019

Jun 14, 2019: The Reserve Bank releases monthly data on India’s international trade in services with a lag of around 45 days.

The value of exports and imports of services during the month of April 2019 are given in the following Table.

Table: International Trade in Services

RBI to inject durable liquidity through OMO purchase auction

Jun 13, 2019: Based on a review of the evolving liquidity conditions and assessment of the durable liquidity needs going forward, RBI has decided to conduct purchase of Government securities under Open Market Operation (OMO) for ₹125 billion on June 20, 2019.

Government Reduces the Rate of ESI Contribution from 6.5% to 4%

June 13, 2019: The Government of India has taken a historic decision to reduce the rate of contribution under the ESI Act from 6.5% to 4%(employers’ contribution being reduced from 4.75% to 3.25% and employees’ contribution being reduced from 1.75% to 0.75%). Reduced rates will be effective from 01.07.2019. This would benefit 3.6 crore employees and 12.85 lakh employers.

The reduced rate of contribution will bring about a substantial relief to workers and it will facilitate further enrollment of workers under the ESI scheme and bring more and more workforce into the formal sector. Similarly, reduction in the share of contribution of employers will reduce the financial liability of the establishments leading to improved viability of these establishments. This shall also lead to enhanced Ease of Doing Business. It is also expected that reduction in rate of ESI contribution shall lead to improved compliance of law.

Guidelines for Enhanced Disclosures by Credit Rating Agencies (CRAs)

SEBI Circular No. SEBI/ HO/ MIRSD/ DOS3/ CIR/ P/ 2019/ 70 dated June 13, 2019 addressed to All Credit Rating Agencies (CRAs) registered with SEBI and All Debenture Trustees (DTs) registered with SEBI, reads as follows:-

1. In order to further strengthen the disclosures made by CRAs and enhance the rating standards, it has been decided to prescribe the following disclosures:

 I. Computation of Cumulative Default Rates (CDR)

 A. With a view to aligning the methodology of calculation of default rates with that followed globally and in partial modification of SEBI Circular CIR/MIRSD/CRA/6/2010 dated May 3, 2010, the default rates shall be computed in the following manner:

FAQs on Overseas Direct Investments (ODI) [Investments done outside India by Indian]

FAQs on Overseas Direct Investments (ODI) (As updated as on May 29, 2019) (The information is taken from RBI site.) Disclaimer : In case of any inconsistency(ies) between FAQ and FEMA notification(s)/Master Directions(s)/AP DIR Circular(s) latter shall prevail.

Q #1. Where are the guidelines pertaining to overseas direct investments available and how to get clarifications pertaining to the guidelines on overseas investment?

Ans:
The guidelines have been notified by the Reserve Bank of India vide Notification No. FEMA 120/RB-2004 dated July 7, 2004, as amended from time to time, which can be accessed at the Reserve Bank’s website in FEMA section.

A Master Direction titled ‘Master Direction on Direct Investment by Residents in Joint Venture (JV) / Wholly Owned Subsidiary (WOS) Abroad’ has been issued. The Master Directions consolidate instructions on rules and regulations framed by the Reserve Bank under various Acts including banking issues and foreign exchange transactions and is available at ‘Notification’ Section on RBI’s website.

7 Characteristics You Should Look For the Finest and the Best Lawyers in Your Area

People joke about good lawyers, but in reality, finding one is critical to any claim or court action. People skimp on representation thinking they got a deal. However, cheaper is not better when it comes to lawyers. Trust planning, criminal, family, or bankruptcy attorneys are not areas of life to try and save money. Things happen in people’s lives without reason or understanding. Having a lawyer that does understand is essential.

1. Constant Clear And Concise Communication

The ability to articulate thoughts, questions, and concerns seem easy. However, it is a skill set that not everyone grasps. Expertise includes written word, spoken language, and listening skills. During law school, attorneys learn the levels of communicating. The ability to argue a case in court is likely one of the hardest things to master, but a requirement.

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