FEMA and Allied Economic Laws Manual (In 2 Volumes)

FEMA and Allied Economic Laws Manual (In 2 Volumes) is a comprehensive reference covering the legal and regulatory framework governing foreign exchange, cross-border transactions, and allied economic laws in India.

The book consists of two volumes:

• Volume I contains the Foreign Exchange Management Act, 1999, with section-wise commentary) Rules, Regulations, and Master Directions. It also describes the role of FEDAI in Forex Dealings, foreign exchange rates, the relevance of UCDPC 600, the Foreign Direct Investment Policy, FAQs released by RBI on Various Parameters, and Judicial Pronouncements on FEMA.
• Volume II contains the Allied Economic Laws, which includes the Foreign Contribution (Regulation) Act, 2010 (with section-wise commentary) and its Rules (FCRA); The Foreign Trade (Development and Regulation) Act, 1992 (with section-wise commentary) and its Rules (FTDRA); The Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974. (with section-wise commentary) (COFEPOSA); The Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976. (with section-wise commentary) (SAFEMA); The Prevention of Money-Laundering Act, 2002 (with section-wise commentary) and its Rules and Judicial Pronouncements on FCRA, FTDRA, COFEPOSA, SAFEMA and PMLA).

Designed for legal practitioners, chartered accountants, company secretaries, corporate professionals, regulators, and students, this two-volume manual brings together the text of key statutes, rules, regulations, notifications, circulars, and allied materials in a well-organized and easy-to-use format, making it an indispensable resource for research, compliance, and day-to-day practice.

About the Author:

Dr. Rajeev Babel (FCS & IP) is a Fellow Member of the Institute of Company Secretaries of India, New Delhi, and an Associate Member of the Indian Institute of Banking and Finance, Mumbai. He is a Certified Independent Director of the Indian Institute of Corporate Affairs, New Delhi, and is enrolled as an Insolvency Professional with the Insolvency and Bankruptcy Board of India, New Delhi. He has had the privilege of working for 30 years in the banking domain in a managerial capacity with the erstwhile Bank of Rajasthan Ltd. and ICICI Bank Ltd. Having an interest in the academic field, he appeared as visiting faculty with various Professional & Management Institutes.

About the Author
Preface
Detailed Contents
Abbreviations used in this Book
Important Websites
Glossary of Important Key Words
List of the Cases Cited in this Book
Relevant Rules / Regulations / Master Directions relating to Various Sections of FEMA
Section-wise Comparison of FERA, 1973 and FEMA, 1999
Volume I
Part-A The Foreign Exchange Management Act, 1999 (FEMA), Rules, Regulations, Master Directions & Various Forms
Chapter A1 A Paradigm Shift in Forex Laws: From Control-Oriented FERA to Management-Based FEMA
Chapter A2 Preliminary (Chapter I, Sections 1 to 2)
Chapter A3 Regulation and Management of Foreign Exchange (Chapter II, Sections 3 to 9)
Chapter A4 Authorised Person (Chapter III, Sections 10 to 12)
Chapter A5 Contravention and Penalties (Chapter IV, Sections 13 to 15)
Chapter A6 Adjudication and Appeal (Chapter V, Sections 16 to 35)
Chapter A7 Directorate of Enforcement (Chapter VI, Sections 36 to 38)
Chapter A8 Miscellaneous (Chapter VII, Sections 39 to 49)
Chapter A9.1 The Foreign Exchange Management (Non-Debt Instruments) Rules, 2019 (Amended upto June 12, 2026)
Chapter A9.2 The Foreign Exchange Management (Adjudication Proceedings and Appeal) Rules, 2000 (Amended up to July 27, 2005)
Chapter A9.3 The Foreign Exchange Management (Current Account Transactions) Rules, 2000 (Amended up to May 16, 2023)
Chapter A9.4 The Foreign Exchange Management (Encashment of Draft, Cheque, Instrument and Payment of Interest) Rules, 2000
Chapter A9.5 The Foreign Exchange Management (Authentication of Documents) Rules, 2000
Chapter A9.6 The Foreign Exchange Management (Overseas Investment) Rules, 2022
Chapter A9.7 The Foreign Exchange (Compounding Proceedings) Rules, 2024
Chapter A9.8 The Appellate Tribunal for Foreign Exchange (Recruitment, Salary and Allowances and Other Conditions of Service of Chairperson and Members) Rules, 2000 (Amended up to October 5, 2001)
Chapter A10.1 The Foreign Exchange Management (Issue of Security in India by a Branch, Office or Agency of a Person Resident Outside India) Regulations, 2000
Chapter A10.2 The Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000 (Amended upto February 18, 2020)
Chapter A10.3 The Foreign Exchange Management (Permissible Capital Account Transactions) Regulations, 2000 (Amended upto March 07, 2019)
Chapter A10.4 The Foreign Exchange Management (Offshore Banking Unit) Regulations, 2002
Chapter A10.5 The Foreign Exchange Management (Withdrawal of General Permission to Overseas Corporate Bodies (OCBs)) Regulations, 2003
Chapter A10.6 The Foreign Exchange Management (Crystallization of Inoperative Foreign Currency Deposits) Regulations, 2014
Chapter A10.7 The Foreign Exchange Management (Realisation, Repatriation and Surrender of Foreign Exchange) Regulations, 2015
Chapter A10.8 The Foreign Exchange Management (Regularization of assets held abroad by a person resident in India) Regulations, 2015
Chapter A10.9 The Foreign Exchange Management (Possession and Retention of Foreign Currency) Regulations, 2015
Chapter A10.10 The Foreign Exchange Management (Export and Import of Currency) Regulations, 2015 (Amended up to February 24, 2026)
Chapter A10.11 The Foreign Exchange Management (International Financial Services Centre) Regulations, 2015
Chapter A10.12 The Foreign Exchange Management (Insurance) Regulations, 2015
Chapter A10.13 The Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2015 (Amended upto October 06, 2025)
Chapter A10.14 The Foreign Exchange Management (Remittance of Assets) Regulations, 2016
Chapter A10.15 The Foreign Exchange Management (Deposit) Regulations, 2016 (Amended upto January 15, 2025)
Chapter A10.16 The Foreign Exchange Management (Establishment in India of a branch office or a liaison office or a project office or any other place of business) Regulations, 2016 (Amended upto January 21, 2019)
Chapter A10.17 The Foreign Exchange Management (Cross Border Merger) Regulations, 2018
Chapter A10.18 The Foreign Exchange Management (Borrowing and Lending) Regulations, 2018 (Amended up to February 09, 2026)
Chapter A10.19 The Foreign Exchange Management (Debt Instruments) Regulations, 2019 (Amended up to October 01, 2025)
Chapter A10.20 The Foreign Exchange Management (Mode of Payment and Reporting of Non-Debt Instruments) Regulations, 2019 (Amended upto June 13, 2026)
Chapter A10.21 The Foreign Exchange Management (Margin for Derivative Contracts) Regulations, 2020 (Amended up to April 30, 2024)
Chapter A10.22 The Foreign Exchange Management (Overseas Investment) Regulations, 2022
Chapter A10.23 The Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023 (Amended up to February 04, 2025)
Chapter A10.24 The Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026
Chapter A10.25 The Foreign Exchange Management (Guarantees) Regulations, 2026
Chapter A11.1 Master Direction - Foreign Exchange Management (Money Changing Activities), dated January 1, 2016 (Updated as on June 24, 2026)
Chapter A11.2 Master Direction – Foreign Exchange Management (Export of Goods and Services), dated January 1, 2016 (Updated as on July 17, 2026)
Chapter A11.3 Master Direction – Foreign Exchange Management (Borrowing and Lending transactions in Indian Rupee between Persons Resident in India and Non-Resident Indians/ Persons of Indian Origin), dated January 1, 2016 (Updated as on February 16, 2026)
Chapter A11.4 Master Direction - Foreign Exchange Management (Liberalised Remittance Scheme (LRS)), dated January 1, 2016 (Updated as on September 06, 2024)
Chapter A11.5 Master Direction - Foreign Exchange Management (Other Remittance Facilities), dated January 1, 2016 (Updated as on May 06, 2026)
Chapter A11.6 Master Direction – Foreign Exchange Management Acquisition or Transfer of Immovable Property under FEMA, dated January 1, 2016 [Updated as on September 01, 2022]
Chapter A11.7 Master Direction - Foreign Exchange Management (Remittance of Assets), dated January 1, 2016 (Updated as on June 29, 2026)
Chapter A11.8 Master Direction – Foreign Exchange Management (Deposits and Accounts), dated January 1, 2016 (Updated as on June 29, 2026)
Chapter A11.9 Master Direction – Foreign Exchange Management (Import of Goods and Services), dated January 1, 2016 (Updated as on January 12, 2026)
Chapter A11.10 Master Direction – (Reporting under Foreign Exchange Management Act, 1999), dated January 1, 2016 (Updated as on June 24, 2026)
Chapter A11.11 Master Direction – Foreign Exchange Management (Miscellaneous), dated January 1, 2016 (Updated as on May 13, 2026)
Chapter A11.12 Master Direction – Opening and Maintenance of Rupee/Foreign Currency Vostro Accounts of Non-resident Exchange Houses, dated January 1, 2016 (Updated as on December 22, 2022)
Chapter A11.13 Master Direction - Foreign Exchange Management (Establishment of Branch Office (BO)/ Liaison Office (LO)/ Project Office (PO) or any other place of business in India by foreign entities), dated January 01, 2016 (Updated as on May 18, 2021)
Chapter A11.14 Master Direction – Foreign Exchange Management (Insurance), dated January 1, 2016 (Updated as on December 07, 2021)
Chapter A11.15 Master Direction – Foreign Exchange Management (Money Transfer Service Scheme (MTSS)), dated February 22, 2017 (Updated as on November 28, 2025)
Chapter A11.16 Master Direction – Foreign Exchange Management (Foreign Investment in India), dated January 4, 2018 (Updated up to June 15, 2026)
Chapter A11.17 Master Direction – Foreign Exchange Management (External Commercial Borrowings, Trade Credits and Structured Obligations), dated March 26, 2019 (Updated as on February 16, 2026)
Chapter A11.18 Master Direction – Foreign Exchange Management (Hedging of Commodity Price Risk and Freight Risk in Overseas Markets) Directions, 2022 (Updated as on April 15, 2024)
Chapter A11.19 Master Direction - Foreign Exchange Management (Overseas Investment) Rules, 2022 (Updated as on April 01, 2026)
Chapter A12 Role of FEDAI in Foreign Exchange
Chapter A13 Foreign Exchange Rates
Chapter A14 Relevance of UCPDC 600 while dealing Import & Export of Goods and Services
Chapter A15 Foreign Direct Investment Policy (FDI Policy)
Chapter A16.1 FAQs on International Trade Settlement in Indian Rupees (INR) (Updated as on April 16, 2026)
Chapter A16.2 FAQs on Annual Return on Foreign Liabilities and Assets (FLA) under FEMA, 1999 (Updated as on July 01, 2026)
Chapter A16.3 FAQs on Foreign Liabilities and Assets Information Reporting (FLAIR) – Online Web Based Reporting System (Updated as on March 25, 2026)
Chapter A16.4 FAQs on External Commercial Borrowings (ECB) and Trade Credits (Updated as on February 16, 2026)
Chapter A16.5 FAQs on Miscellaneous forex facilities (Updated as on November 28, 2025)
Chapter A16.6 FAQs on Special Non-Resident Rupee Accounts (Updated as on January 16, 2025)
Chapter A16.7 FAQs on Foreign Currency Accounts by Resident Individuals (Updated as on January 16, 2025)
Chapter A16.8 FAQs on Accounts in India by Non-residents (Updated as on January 16, 2025)
Chapter A16.9 FAQs on Compounding of Contraventions under FEMA, 1999 (Updated as on October 01, 2024)
Chapter A16.10 FAQs on Liberalised Remittance Scheme (Updated as on April 06, 2023)
Chapter A16.11 FAQs on Purchase of Immovable Property (Updated as on April 06, 2023)
Chapter A16.12 FAQs on Introduction of Legal Entity Identifier for Cross-border Transactions {Guidelines issued vide A.P. (DIR Series) Circular No. 20 dated December 10, 2021}
Chapter A16.13 FAQs on Money Changing Activities (Updated as on October 21, 2021)
Chapter A16.14 FAQs on Remittances [Money Transfer Service Scheme (MTSS) and Rupee Drawing Arrangement (RDA)] (Updated as on January 18, 2017)
Chapter A16.15 FAQs on Liaison/Branch/Project Offices of foreign entities in India (As on December 26, 2016)
Chapter A16.16 FAQs on Remittance of Assets (Updated as on September 02, 2016)
Chapter A16.17 FAQs on Exchange Earner’s Foreign Currency (EEFC) Account (Updated as on 05.07.2016)
Chapter A16.18 FAQs on Swap Window for attracting FCNR (B) Dollar funds (Updated as on September 18, 2013)
Chapter A16.19 FAQs on Swap Facility for FCNR (B) deposits, External Commercial Borrowings and Overseas Foreign Currency Borrowings (Updated as on June 23, 2026)
Volume II
Part-B The Foreign Contribution (Regulation) Act, 2010 & Rules
Chapter B1 The Foreign Contribution (Regulation) Act, 2010 (Act No. 42 of 2010) (Amended up to September 29, 2020)
Chapter B2 The Foreign Contribution (Regulation) Rules, 2011 (Amended up to June 22, 2026)
Chapter B3 Compliances under Foreign Contribution (Regulation) Rules, 2011 (Various Forms Prescribed under the FCRA)
Chapter B3.1 Form FC 1 of Foreign Contribution (Regulation) Rules, 2011
Chapter B3.2 Form FC 2 of Foreign Contribution (Regulation) Rules, 2011
Chapter B3.3 Form FC 3A of Foreign Contribution (Regulation) Rules, 2011
Chapter B3.4 Form FC 3B Foreign Contribution (Regulation) Rules, 2011
Chapter B3.5 Form FC 3BB Foreign Contribution (Regulation) Rules, 2011
Chapter B3.6 Form FC 3C of Foreign Contribution (Regulation) Rules, 2011
Chapter B3.7 Form FC 4 of Foreign Contribution (Regulation) Rules, 2011
Chapter B3.8 Form FC 5 of Foreign Contribution (Regulation) Rules, 2011
Chapter B3.9 Form FC 6 of Foreign Contribution (Regulation) Rules, 2011
Chapter B3.10 Form FC 6A of Foreign Contribution (Regulation) Rules, 2011
Chapter B3.11 Form FC 6B of Foreign Contribution (Regulation) Rules, 2011
Chapter B3.12 Form FC 6C of Foreign Contribution (Regulation) Rules, 2011
Chapter B3.13 Form FC 6D of Foreign Contribution (Regulation) Rules, 2011
Chapter B3.14 Form FC 6E of Foreign Contribution (Regulation) Rules, 2011
Chapter B3.15 Form FC 6F of Foreign Contribution (Regulation) Rules, 2011
Chapter B3.16 Form FC 7 of Foreign Contribution (Regulation) Rules, 2011
Chapter B3.17 Form FC 8 of Foreign Contribution (Regulation) Rules, 2011
Chapter B3.18 Form FC 9 of Foreign Contribution (Regulation) Rules, 2011
Chapter B3.19 Form FC 10 of Foreign Contribution (Regulation) Rules, 2011
Chapter B3.20 Form FC AA of Foreign Contribution (Regulation) Rules, 2011
Chapter B4 The Foreign Contribution (Acceptance or Retention of Gifts or Presentations) Rules, 2012
Part-C The Foreign Trade (Development and Regulation) Act, 1992 & Rules
Chapter C1 The Foreign Trade (Development and Regulation) Act, 1992 (Amended up to August 20, 2010)
Chapter C2 The Foreign Trade (Regulation) Rules, 1993 (Amended up to April 17, 2015)
Chapter C3 The Foreign Trade (Exemption from Application of Rules in Certain Cases) Order, 1993
Chapter C4 The Safeguards Measures (Qualitative Measures) Rules, 2012
Chapter C5 The Foreign Trade Policy (FTP) 2023
Part-D Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA)
Chapter D1 The Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (Amended up to June 25, 1993)
Part-E Smugglers and Foreign Exchange Manipulators Act, 1976 & Rules (SAFEMA)
Chapter E1 The Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (SAFEMA) (Amended up to April 4, 2021)
Chapter E2 The Appellate Tribunal for Forfeited Property (Procedure) Rules, 1986
Chapter E3 The Appellate Tribunal for Forfeited Property (Fees) Rules, 1987
Chapter E4 The Smugglers and Foreign Exchange Manipulators (Receipt, Management and Disposal of Forfeited Property) Rules, 2006
Chapter E5 The Appellate Tribunal for Forfeited Property (Procedure for Appointment of Chairman) Rules, 2016
Chapter E6 Tribunal (Conditions of Service) Rules, 2021
Part-F Prevention of Money-laundering Act, 2002 & Rules
Chapter F1 The Prevention of Money-laundering Act, 2002 (15 of 2003)
Chapter F2 The Prevention of Money-Laundering (Receipt and Management of Confiscated Properties) Rules, 2005
Chapter F3 The Prevention of Money-Laundering (Appeal) Rules, 2005
Chapter F4 The Prevention of Money-Laundering (Forms, Search and Seizure or Freezing and the Manner of Forwarding the Reasons and Material to the Adjudicating Authority, Impounding and Custody of Records and the Period of Retention) Rules, 2005
Chapter F5 The Prevention of Money-Laundering (Maintenance of Records) Rules, 2005
Chapter F6 The Prevention of Money-Laundering (Manner of Receiving the Records Authenticated Outside India) Rules, 2005
Chapter F7 The Prevention of Money-Laundering (The Forms and the Manner of Forwarding a Copy of Order of Arrest of a Person along with the Material to the Adjudicating Authority and its Period of Retention) Rules, 2005
Chapter F8 The Prevention of Money-Laundering (The Manner of Forwarding a Copy of the Order of Retention of Seized Property along with the Material to the Adjudicating Authority and the Period of its Retention) Rules, 2005
Chapter F9 The Prevention of Money-Laundering (Appointment and Conditions of Service of Chairperson and Members of Adjudicating Authorities) Rules, 2007
Chapter F10 The Prevention of Money-Laundering (Appointment and Conditions of Service of Chairperson and Members of Appellate Tribunal) Rules, 2007
Chapter F11 The Prevention of Money-laundering (Issuance of Provisional Attachment Order) Rules, 2013
Chapter F12 The Adjudicating Authority (Procedure) Regulations, 2013
Chapter F13 The Prevention of Money-laundering (Taking Possession of Attached or Frozen Properties Confirmed by the Adjudicating Authority) Rules, 2013
Chapter F14 The Ministry of Finance, Adjudicating Authority under the Prevention of Money-laundering Act, 2002, Registrar, (Group ‘A’ post) Recruitment Rules, 2016
Chapter F15 The Prevention of Money-laundering (Restoration of Confiscated Property) Rules, 2016