List any seven permissible classes of Capital account transactions that a person resident in India can undertake, under the Foreign Exchange…
CA Intermediate · Corporate and Other Laws · MTP · May 2025
List any seven permissible classes of Capital account transactions that a person resident in India can undertake, under the Foreign Exchange Management Act (FEMA), 1999.
Suggested Answer and Working Notes:
The list of permissible classes of transactions made by persons resident in India is: 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 (borrowings) 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.
Topics: The Foreign Exchange Management Act, 1999
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