FEMA & FDI Ready Reckoner by Taxmann – 24th Edition 2026

FEMA & FDI Ready Reckoner is a comprehensive, practice-oriented reference work that consolidates and operationalises India’s foreign exchange management and foreign investment framework. Designed as a ready reckoner, the book brings together the Foreign Exchange Management Act 1999 (FEMA), the FDI Policy framework, and the extensive body of RBI rules, regulations, Master Directions, A.P. (DIR) circulars, and procedural instructions that govern cross-border transactions in India.

Recognising that FEMA compliance does not exist in a single statute, the book addresses the fragmented regulatory landscape, where substantive permissions are spread across the Act, Central Government rules, RBI regulations, and continuously evolving regulatory directions. It translates this complex ecosystem into a transaction-ready, compliance-focused reference that enables readers to determine permissibility, understand conditions, execute transactions, complete statutory reporting, and manage regulatory risk.

This Edition incorporates all amendments, regulatory changes, circulars, and policy updates as amended up to date, capturing the latest developments in FDI liberalisation, overseas investment reforms, ECB and trade credit norms, digital compliance platforms, INR-based international trade settlement, enforcement mechanisms, and compounding procedures.

This Ready Reckoner is indispensable for professionals and institutions that deal with foreign exchange and cross-border transactions regularly, including:

• Chartered Accountants, Company Secretaries & Cost Accountants – For structuring, advisory, reporting, certification, and audit under FEMA and FDI
• Corporate Finance, Treasury & Compliance Teams – For execution of foreign investment, remittances, ODI, ECB, guarantees, and recurring filings
• Banks, Authorised Dealers & Financial Institutions – For transaction processing, regulatory interpretation, and reporting through RBI systems
• Law Firms & Legal Professionals – For FEMA advisory, enforcement defence, compounding matters, and appellate proceedings
• Foreign Investors, MNCs & Startups – For understanding entry routes, sectoral caps, pricing guidelines, downstream investment, and compliance obligations
• Indian Entities Investing Overseas – For navigating the post-2022 overseas investment regime and continuing obligations
• Regulators, Government Officers & Enforcement Authorities – For adjudication, compounding, and policy implementation
• Academics & Advanced Students – For a structured and applied understanding of India’s foreign exchange law

The Present Publication is the 24^th Edition | 2026, amended up to 25^th November 2025. This book is authored by Taxmann’s Editorial Board with the following noteworthy features:

• [End-to-End FEMA Coverage] From foundational concepts to complex capital account transactions
• [Integrated FDI Framework] Consolidated treatment of policy, sectoral caps, entry routes, and conditions
• [Strong Compliance & Reporting Orientation] Detailed linkage between substantive law and filing obligations
• [Digital-era Compliance Focus] Coverage of RBI platforms such as CIMS, FIRMS/Single Master Form (SMF), FETERS, and APConnect
• [Late Filing & Regularisation Guidance] In-depth treatment of Late Submission Fees (LSF) across ODI, FDI, ECB, and other reporting regimes
• [Sector-wise FDI Policy at a Glance] Structured, easy-to-navigate sectoral summaries
• [Contemporary Transaction Rails] INR-based international trade settlement, Special Rupee Vostro Accounts, OPGSP frameworks
• [Enforcement & Risk Management] Dedicated chapters on penalties, appeals, and compounding under FEMA
• [Allied Law Integration] Includes PMLA, FCRA, COFEPOSA, and IFSC framework
• [High Usability] Extensive acronyms section and a detailed subject index for rapid lookup

The book is structured as a comprehensive lifecycle reference for foreign exchange and foreign investment transactions, covering FEMA fundamentals, advanced cross-border transactions, compliance, and enforcement.

• FEMA Foundations & Transaction Mechanics
  • This section explains the evolution and scope of FEMA, the role of Authorised Persons, and the framework governing foreign exchange accounts in India and abroad. It covers receipt, payment, realisation, repatriation, and surrender of foreign exchange, along with money changing activities, the Money Transfer Service Scheme (MTSS), and rules on possession, retention, and movement of foreign currency
• Remittances, Trade & Liberalised Remittance Scheme (LRS)
  • This part deals with current account transactions, including remittances under LRS, exports and imports of goods and services, project and service exports, and foreign exchange rate mechanisms. It also addresses operational aspects of cross-border payments through Online Payment Gateway Service Providers (OPGSPs)
• Capital Account Transactions & Foreign Direct Investment (FDI) in India
  • This section provides comprehensive coverage of capital account transactions and foreign investment in India, including FDI in Indian companies, sector-wise FDI policy, and downstream investment. It covers FDI through rights and bonus issues, sweat equity, mergers and amalgamations, transfer of securities and pricing guidelines, FDI in LLPs and startups, investments through GDRs/ADRs, and investments by NRIs/OCIs, FPIs, FVCIs, foreign funds, central banks, and investment vehicles
• Overseas Investment & Cross-Border Finance
  • This part addresses overseas investment by Indian entities under the 2022 Rules and RBI Master Directions, including APR and continuing obligations. It covers guarantees, borrowing and lending in foreign currency and Indian Rupees, External Commercial Borrowings (ECB), trade credit and structured obligations, foreign investment in debt instruments, and the Late Submission Fee (LSF) framework for delayed filings
• Property, Banking & Institutional Framework
  • This section covers the acquisition and transfer of immovable property in India and abroad, the remittance of assets, and the establishment of Branch, Liaison, and Project Offices by foreign entities. It also includes Indian Depository Receipts (IDRs), risk management and inter-bank dealings, Vostro Accounts, INR-based international trade settlement, and Special Rupee Vostro Accounts
• Enforcement, Penalties & Allied Laws
  • The final section explains enforcement under FEMA, penalties, appeals, and compounding of contraventions. It also integrates allied laws such as the Prevention of Money Laundering Act (PMLA), the Foreign Contribution (Regulation) Act (FCRA), COFEPOSA, and the regulatory framework governing International Financial Services Centres (IFSC) and the IFSCA

The structure of the book is as follows:

• 55 Logically Sequenced Chapters arranged to mirror real-world transaction flows
• Issue-based Modular Design, allowing both sequential reading and instant reference
• Procedural Depth, linking law with RBI platforms, filing timelines, and compliance systems
• Extensive Acronyms List to decode regulatory shorthand
• Comprehensive Subject Index for fast, pinpoint navigation