RBI & FEMA Advisory Services

India's foreign exchange regulatory framework, governed by the Foreign Exchange Management Act 1999 (FEMA) and administered by the Reserve Bank of India (RBI), is one of the most complex regulatory regimes for businesses engaged in cross-border activities. Whether you are receiving foreign investment, making overseas investments, borrowing from foreign lenders, or engaging in any form of cross-border financial transaction, FEMA compliance is non-negotiable.

Non-compliance with FEMA can attract penalties up to three times the amount involved in the contravention, and in certain cases, prosecution under the Foreign Exchange Management Act and the Prevention of Money Laundering Act (PMLA). The regulatory landscape is continuously evolving, with the RBI issuing frequent Master Directions, circulars, and FAQs that require constant monitoring.

PDA Corporate Solutions' RBI & FEMA Advisory practice is led by professionals with extensive experience in the interpretation and application of FEMA regulations. We serve multinational corporations setting up Indian operations, Indian companies expanding overseas, NRI investors, and businesses involved in international trade and cross-border structuring.

Why Choose PDA

Key Benefits of Our RBI & FEMA Advisory Services

Proactive Compliance Monitoring

Regular review of your cross-border transactions against current FEMA regulations to identify and address compliance gaps before they become violations and attract RBI penalties.

Compounding Expertise

Experienced representation in compounding applications for past FEMA contraventions, minimizing penalty exposure through voluntary disclosure and regularization.

FDI Route Optimization

Strategic advice on automatic route vs. government approval route for FDI to minimize regulatory approvals and optimize transaction timelines for investors.

End-to-End Transaction Support

Advisory from transaction structuring through RBI reporting, including FC-GPR, FC-TRS, FCTRS, and other mandatory filings on the FIRMS portal.

What We Offer

Detailed Service Offerings

FDI Advisory & Compliance

Structuring of inbound foreign investment, sector-specific FDI policy analysis, downstream investment compliance, and Form FC-GPR, FC-TRS reporting on the FIRMS portal.

External Commercial Borrowings (ECB)

Advisory on ECB eligibility, all-in-cost compliance, hedging requirements, Form ECB and ECB-2 reporting to RBI, and end-use monitoring under Master Direction on ECB.

Overseas Direct Investment (ODI)

Advisory on ODI regulations, Form OPI/ODI reporting, Annual Performance Report (APR) filing, and compliance for Indian companies investing abroad under FEMA ODI Regulations 2022.

NRI Investment Advisory

Guidance on NRE/NRO/FCNR account regulations, repatriation of income, immovable property regulations, Schedule 4 FEMA investment, and NRI participation in Indian companies.

FEMA Compounding Applications

Preparation and representation for compounding applications before the RBI and Adjudicating Authority for identified FEMA contraventions to minimize penalties and regularize compliance position.

Common Questions

Frequently Asked Questions

What is FEMA compounding?

FEMA compounding is a process by which a person who has violated FEMA regulations can approach the RBI or Adjudicating Authority to voluntarily disclose the contravention and pay a compounding fee to regularize the violation, avoiding prosecution. It is an important tool for companies with legacy non-compliance.

What reporting is required when a foreign company invests in an Indian company?

Upon receipt of foreign investment, the Indian company must file Form FC-GPR on the FIRMS portal within 30 days of issue of shares. Annual filings (FCGPR Annual Return) are also required. Share transfers between residents and non-residents require Form FC-TRS filing within 60 days.

Can an Indian company invest in a foreign company without RBI approval?

Yes, under the automatic route, Indian companies can make ODI in overseas entities subject to the financial commitment ceiling of 400% of net worth, compliance with FEMA ODI Regulations 2022, and mandatory reporting requirements.

What sectors are prohibited from receiving FDI?

FDI is prohibited in sectors such as atomic energy, railway operations (other than permitted activities), lottery, gambling, chit funds, Nidhi companies, tobacco manufacturing, and real estate business (other than development of townships and settlements).

Why PDA

Why Choose PDA Corporate Solutions?

PDA Corporate Solutions is a specialized corporate advisory firm headquartered in Kochi, Kerala. Our team of qualified Company Secretaries, legal professionals, Chartered Accountants, and management consultants brings an integrated, multi-disciplinary approach to every client engagement.

We serve businesses across Kerala and India — from startups and family enterprises to listed companies and multinational subsidiaries — with professional advisory that is commercially pragmatic, legally rigorous, and always client-focused.

Multi-disciplinary team of CS, CA, legal, and management professionals

Kochi-headquartered with pan-India client base

Transparent pricing with fixed-fee and retainer models

Confidentiality assured with strict data protection protocols

RBI & FEMA Advisory Services