FEMA compounding is a structured process that allows businesses to voluntarily correct and regularize past non-compliance related to foreign exchange transactions. Violations may involve delayed reporting, improper FDI or ODI filings, incorrect remittance classification, ECB reporting gaps, or export-import mismatches. Through compounding, companies can avoid prolonged litigation and settle violations with regulators in a time-bound manner. The process requires detailed documentation, justification of lapses, proof of corrective actions, and close coordination with authorities. Sriya Enterprise specializes in preparing compounding applications, supporting documentation, transaction summaries, and compliance rectification plans. Our expertise ensures faster resolution, reduced regulatory exposure, and clean FEMA compliance status for the future.
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…
