RBI vide circular dated November 17, 2020 has delegated to the Regional Offices/ Sub Offices of the Reserve Bank the power to compound certain contraventions. Contraventions under FEM (Non –Debt Instruments) Rules, 2019 dated October 17, 2019, FEM (Mode of Payment and Reporting of Non-Debt Instruments) Regulations dated October 17, 2019 like issue of shares without approval of RBI or Government, Receiving investment in India from non-resident or taking on record transfer of shares by Investee Company etc. shall now be compounded by Regional Offices/ Sub Offices of the Reserve Bank.
