A.P. (DIR Series) (2001-2002) Circular No. 17, dated 15-12-2001
Authorised
Dealers are aware that with the introduction of Foreign Exchange Management Act
(FEMA), 1999, certain returns prescribed under Foreign Exchange Regulation Act
(FERA), 1973, are no longer relevant. We have reviewed the position and advice
as under :
With
introduction of FEMA, persons resident in India need not submit Annual Returns
in respect of all types of foreign assets held by them either in terms of
general permission or specific permission of Reserve Bank. However, wherever
the Reserve Bank has granted specific permission for acquisition of assets as
well as sale thereof and submission of Return has been prescribed as one of the
conditions of approval, the applicants are required to furnish full details of
the foreign assets as prescribed in the permission.
In
terms of paragraph 10C.24A(iii) of erstwhile Exchange Control Manual
(ECM), designated branches of authorised dealers were required to submit a
half-yearly statement, in form CIR, to Reserve Bank giving details of the
remittance made to NRI or credits given to NRE/FCNR accounts by 15th of the
month following the half-year to which it pertains. In view of provisions
contained in section 5 of FEMA, 1999, authorised dealers need not submit
statement in form CIR to the Reserve Bank.
With
introduction of FEMA, 1999, in terms of paragraphs 7(v) and 8 of
Annexure 1 to A.D. (M.A. Series) Circular No. 11, dated May 16, 2000,
authorised dealers can, inter alia, themselves allow remittances of
surplus freight/passage collections by airline/shipping companies after
verification of documentary evidence in support of the remittance. Therefore,
airline/shipping companies need not submit statements in form SPG and SPM to
the Reserve Bank.
In
view of discontinuation of Diplomatic Bond Stores Account, authorised dealers
need not submit DBS [c.f. paragraph 11B.5(e) of the ECM (1993 edition)]
statement to the Reserve Bank.
5. Authorised
Dealers may bring the contents of this circular to the notice of their
constituents concerned.
6. The
directions contained in this circular have been issued under section 10(4) and
section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).