What are the classes of capital account transactions of persons resident in India?

CS Executive · Economic and Commercial Laws · PYQS · December 2015
What are the classes of capital account transactions of persons resident in India?

Answer & Explanation:

According to Foreign Exchange Management (Capital Account Transactions) Regulations, 2000, followings are the Classes of Capital Account Transactions of Persons Resident in India: investment by a person resident in India in foreign securities. foreign currency loans raised in India and abroad by a person resident in India; transfer of immovable property outside India by a person resident in India; guarantees issued by a person resident in India in favour of a person resident outside India; export, import and holding of currency/currency notes; loans and overdrafts by a person resident in India from a person resident outside India; maintenance of foreign currency accounts in India and outside India by a person resident in India; taking out of insurance policy by a person resident in India from an insurance company outside India; loans and overdrafts by a person resident in India to a person resident outside India; remittance outside India of capital assets of a person resident in India; sale and purchase of foreign exchange derivatives in India and abroad and commodity derivatives abroad by a person resident in India.

Topics: Foreign Exchange Management Act, 1999

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