Samir Sheth
Managing Partner
Deal Advisory
International Liaison Partner
Deal Advisory
International Liaison Partner
Overview
India is yet to reach full capital account convertibility. As a result, foreign exchange transactions, be they capital accounts or current accounts, are regulated and monitored by the Reserve Bank of India. With the rapidly evolving business dynamics, it is equally important for corporations to ensure compliance with the exchange control requirements. Failure to do so could not only have monetary implications for the company and its senior management but also lead to reputational loss.
Further, there are certain regulatory approvals and licences required for certain activities, such as those of Non-Banking Financial Companies (NBFCs), Payment gateways, Payment aggregators, Alternate Investment funds (AIFs), Mutual Funds, Housing Finance Companies (HFCs), not-for-profit entities, etc. Moreover, foreign investment in certain sectors/situations requires prior approval from regulators.
