Requirements for filing of Compounding Application

Checklist for applying for Compounding:

a) Application Form as per Rule 4 & 5 (Form is attached herewith) in terms of A.P. (DIR Series) Circular No 56 dated June 28, 2010

b) Necessary Annexures (attached herewith) according to the nature of contravention i.e. FID/ECB/ODI/LO/BO/PO in terms of A.P. (DIR Series) Circular No.57 dated December 13, 2011 updated in terms of A.P. (DIR Series) Circular No. 20 dated August 12, 2013 (NIC Code and Activity to be mentioned)

c) Demand Draft of Rs.5000/- in favour of “Reserve Bank of India” payable at the Regional Office where the application is being submitted OR at Mumbai if the application is submitted at CEFA, Mumbai.

d) Bank particulars of the applicant as per Signed ECS Mandate (Form is attached herewith)

e) Photocopy of a cancelled cheque leaf in respect of the applicant.

f) Photocopy of the PAN card.

g) An undertaking that the applicant is not under investigation of any agency such as DoE, CBI etc.

h) A copy of the Memorandum and Articles of Association

i) Latest audited balance sheet

**Details regarding the contravention amount, in foreign currency (if applicable) and corresponding Indian rupees is to be mentioned.  

Form

(See Rule 4 or 5)

 (To be filled in duplicate and shall be accompanied  by certified copy of the Memorandum issued)

1. a. Name of the applicant (in BLOCK LETTERS)

    b. GSTIN (if applicable)

2. a. Full address of the applicant (including Phone and Fax Number)

    b. Address of the applicant (as per GST certificate, if applicable)

3. Whether the applicant is resident in India or resident outside India [Please refer to Section 2(v) of the Act]

4. Name of the Adjudicating Authority before whom the case is pending

5. Nature of the contravention [according to sub-section (1) of Section 13]

6. Brief facts of the case

7. Details of fee for application of compounding

8. Any other information relevant to the case

I/We declare that the particulars given above are true and correct to the best of my/our knowledge and belief and that I/We am/are willing to accept any direction/order of the Compounding Authority in connection with compounding of my/our case.

Dated:                                                                                  (Signature of the Applicant)

[Please Find draft annexures to be attached herewith]

Annex- FDI

Details to be furnished along with application for compounding of

contravention relating to Foreign Direct Investment in India

• • Name of the applicant
  • Date of incorporation
  • Income-tax PAN
  • Nature of activities under taken (Please give NIC code - 2008)
  • Brief particulars about the foreign investor
  • Details of foreign inward remittances received by Applicant Company from

date of incorporation till date

Table A

Table B

Table C

Table D

A= B+C

Please give supporting documents

Table A- Copies of FIRC with date stamp of receipt at RBI

Table B- Copies of FCGPR with date stamp of receipt at RBI

Table C - letter seeking refund/ allotment of shares- approval letter from RBI A2

form

• Copies of Balance Sheet during the period of receipt of share application

money and allotment of shares

• Nature of contravention and reasons for the contravention

Annex- ECB

Details to be furnished along with application for compounding of

contravention relating to External Commercial Borrowing

• Name of the applicant
• Date of incorporation
• Income-tax PAN
• Nature of activities under taken (Please give NIC code - 2008)
• Brief particulars about the foreign lender
• Is the applicant an eligible borrower?
• Is the lender eligible lender?
• Is the lender an equity holder?
• What is the level of his holding at the time of loan agreement?
• Details of ECB
• Date of Loan agreement
• Amount in Foreign Currency and Indian Rupee
• Rate of interest
• Period of loan
• Repayment particulars

     Details of drawdown

• Details of LRN Number- application and receipt
• Details of ECB 2 returns submitted; Period of return: Date of submission
• Details of Utilization of ECB in Foreign Currency and Indian Rupee
• Nature of contravention and reasons for the contravention
• All supporting documents may be submitted

Annex- ODI

Details to be furnished along with application for compounding of

contravention relating to Overseas Investment

• Name of the applicant
• Date of incorporation
• Income-tax PAN
• Nature of activities under taken (Please give NIC code - 2008)
• Name of Overseas entity
• Date of incorporation of overseas entity
• Nature of activities under taken by overseas entity
• Nature of entity- WOS/JV
• Details of remittance sent-Date of remittance; Amount in FCY and INR
• Details of other financial Commitment
• Details of UIN applied and received
• Date of receipt of share certificate
• Approval of other regulators if required
• Details of APRs submitted: For the period ended; date of submission
• Nature of contravention and reasons for the contravention
• All supporting documents may be submitted

Annex- Branch Office / Liaison Office

Details to be furnished along with application for compounding of

contravention relating to Branch/Liaison Office in India

• Name of the applicant
• Date of incorporation
• Income-tax PAN
• Nature of activities under taken (Please give NIC code - 2008)
• Date of approval for opening of Liaison Office/ Branch Office
• Validity period of the approval
• Income and expenditure of the LO/BO
• Dates of submission of Annual activity Certificates
• Nature of contravention and reasons for the contravention
• All supporting documents may be submitted

UNDERTAKING

(On the letterhead of the applicant)

* I/We                               (Name of the applicant) hereby confirm/declare that I/we am/are not under any enquiry/investigation/adjudication by Directorate of Enforcement, as on the date of this application.

I/We further undertake to inform to the Compounding Authority / Reserve Bank of India immediately, in writing, if any enquiry/investigation/adjudication proceedings are initiated by the Directorate of Enforcement against me/us at any time hereafter but on or before the date of issuance of the compounding order in respect of the compounding application filed by me/us.’

OR

*I/We                                (Name of the applicant) hereby confirm/declare that I/we am/are or was/were under enquiry/investigation/adjudication by Directorate of Enforcement, and the details are given in the Annex.

I/We further undertake and confirm that no appeal has been filed by me/us under section 17 or section 19 of FEMA, 1999.

( * Strike out one)

Signature of the authorised signatory

ANNEX

ELECTRONIC CLEARING SERVICE (ECS)

MANDATE FORM

4. Checklist for Attachments (kindly tick):

5. I/We hereby declare that the particulars given above are correct and complete. If the transaction is delayed or not effected at all for reasons of incomplete or incorrect information, I/We would not hold the user institution responsible.

Date :                                                                Signature of the Authorised Signatory

Place :                                                                   (Name of the Authorised Signatory)