CV

SET A · Advanced

FEMA — Cross-Border Mergers

Governed by Section 234 + Rule 25A + FEMA (CBM) Regulations 2018. Deemed RBI approval if foreign jurisdiction is FATF/IOSCO compliant and assets/liabilities settled within 2 yrs.

Memory aid

Section 234 → Rule 25A → CBM Regs 2018. Two years for compliance.

⚠ Most common mistake

Treating outbound and inbound mergers identically — the conditions differ.

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