ECB FEMA norms regulate how Indian companies borrow funds from overseas lenders, ensuring compliance with borrowing limits, eligible lenders, end-use restrictions, maturity periods, and proper reporting procedures. Violations often occur when companies fail to follow the prescribed all-in-cost ceiling, misapply funds for restricted purposes, delay filing ECB forms, or miss monthly ECB-2 returns. Any discrepancy in drawdowns, repayments, or hedging compliance can trigger regulatory consequences. As data sharing between banks and regulators increases, borrowers must maintain accurate, timely records. Sriya Enterprise helps businesses navigate the complexities of ECB regulations through transaction review, reporting assistance, end-use validation, and periodic compliance checks. Our structured guidance ensures companies raise and manage overseas debt without risking FEMA breaches.
The Enforcement Directorate (ED) has declared that 2025 will see a sharpened focus on violations under the Foreign Exchange Management Act (FEMA), according to its Director, Rahul Navin. This marks a significant regulatory shift: FEMA compliance is being elevated to…
