[Applause] [Music] Capital transaction has been divided into how many categories just give me the overv start the process how many categories five what are the five categories first definition second definition section number 2 e then clarifications under Section number six then permissible transactions permissible transactions are given under the act or in the rules rules name Foreign Exchange Management Capital account transaction rules 2,000 this personal transaction has been further divided into two categories for PR and PRI for the pr given under schedule P under I hope your books are closed materials next Point transactions with no restrictions how many transactions are there three transactions then last concept prohibition there are certain transaction which are prohibited certain capital account transaction which are prohibited divided into two categories PR and P oi schedule number one schedule two give me number of points from the beginning definition given under Section number in point definition section number two e clarification under Section number how many points under clarification then third category permissible transaction for PR under schedule one how many points 11 points permissible transactions for PR oh I under schedule to 8 points but not uh transaction which are having no restrictions three prohibitions on PRI one prohibition on PRI we have to complete all these points today okay first start with the definition what is the definition definition sentence First Capital account transaction means a transaction which Alters which Alters first line assets or liabilities including contingent liabilities outside India of PRI second Point assets liabilities in India of TR what the definition first line Capital account transaction means a transaction which Alters Alters what first point assets or liabilities including including liabilities situated where outside India belonging to whom of PR second category assets or liabilities including liabilities liabilities for a p would be contingent asset for Indian government which should be predicted or shall not be predicted so we are using the word assets and liabilities situated where in India of p p oi then today we're going to start with Section number how many points 7 well start start with the process backgound any kind of import or export which is done into India or out of India whether such import or export needs dollars foreign currency or Indian currency foreign currency that means this foreign currency is not maintained by individuals in India in India we are use only one currency that is rupes the Indian currency if you want to enter into any transaction in India or 12 nautical miles into IND IND you are going to use which kind of currency Indian currency any transaction which has to be done outside this area we'll be using what kind of currency foreign currency whether we have access to foreign currency whether we have access to foreign currency so for example simply a basic transaction we're importing a machinary into India for importing that machiner into India we have to pay the consideration should be paid in which currency but in your pocket you having rupes this rupees must be exchanged with from whom central government basically central government the administrative Powers is given to the RBI the RBI will provide you dollars in Li of your rupees they're not providing it free of a cost they not providing it free of cost so whatever transaction which we going to discuss permissible under meaning and give me rupees I'll provide you dollars that doesn't mean that RBI is giving donation they're Distributing dollars here it is always on Exchange basis you will give your Rupees to the RBI and RBI will give what dollars whether the dollars is always purchased from RBI whether it is always purchased from the RBI itself yes hierarchy Authority First who is a ultimate having powers central government under central government we have certain Ministries Ministries I explain but basically it has been forwarded to RBI but RBI is not doing the activities on their own on a ground level basis we have people called us authorized person authorized person has been divided into how many categories three are the three categories first authorized dealer second money changer last concept Offshore Banking unit only keyword dealer mean basically is dealing in Securities foreign Securities are deal person forign exchange dealer money changer means basically is going to convert the Indian rupees into a dollar any kind of a foreign currency Offshore Banking unit is situated in India or outside India in India but specifically in which areas of India SZ and EO use what is s what is EO use export oriented units if you're located in these areas it is more likely that these entities will export goods out of India they're exporting Goods out of India what is required indirectly Foreign Exchange Dollars will be useful so Offshore Banking unit these three people combined will be called as what authorized person can you directly purchase dollars from another individual in India dollars must always be purchased or sold or held only through whom authorized person without an authorized person can you purchase any dollars so dollars a foreign currency is available only through the authorized person the same point is trying to be explained in the first subsection of section six section six subsection one states that any kind of a capital account transaction that means you are purchasing some kind of an asset the capital account transaction can be exercised by any person but it must be exercised only through a authorized person only key point of remember is we can do capital transactions but those Capital account transactions can be entered into by any person any person of India or any person resident out of outside India but he has to do it only with the help of authorized person without the intervention of authorized person if any kind of capital account transaction is been taken care of that will be offensive under PML offensive under pemma Provisions that means they'll be having punishments for the same so can you directly purchase if I'm having $10 in my hand can I sell the $10 to you no you have to deal only through authorized person any transaction which is done without the authorized person is contenting the provisions oring with the provisions continuing the provisions cont the provisions so first point it has to be done what kind of transaction we discussing what capital account or current account capital account any person can enter into capital account transaction but it must be done with the authorized person first point take the heading points keyword first heading section number six heading Apple account transaction the first point any person any person may any person may I got a copy send give me reasons now I'm importing Goods if I'm importing Goods whether I have to pay have to pay consideration that consideration will be paid in which currency foreign currency can can I say simply in dollars for the payment of dollars understand this properly put yourself in the position of an importer if you're importing Goods you have an obligation to pay which currency dollars to pay dollars but whether you having dollars in your hand so what transaction should you enter to acquire these dollars you have to enter into contract with with a authorized person where authorized person will sell what dollars you'll pay what dollars in India is a currency or a commodity you are purchasing a commodity dollar for with payment of rupees these dollars are purchased or sold purchase we are drawing dollars or selling dollars drawing any person may first keyword draw that means basically acquire purchase draw same case exactly opposite we are now exporting Goods if you're exporting Goods out of India whether you'll receive consideration in dollars now you are having dollars in your hand can you hold dollars in your hand you're not allowed to hold dollars you have to convert it with the authorized person into Rupees that mean you going to again enter into a contract put yourself yourself in a position of an exporter if you have exported goods and brought dollars into India you have to sell the dollars you will sell the dollars with whom authorized person and authorized person will give you what rupes are you purchasing dollars or selling dollars this time any person may draw or sell draw sell what dollars dollar and you we use foreign currency any person may draw or sell foreign currency through an authorized person for dealing in what we are under Section number section number six talks about capital account actions so any person may draw or sell what foreign currency through a authorized person in dealing with what kind of transaction Capital account transaction are we clear on this sentence any person may draw or sell draw or sell what foreign currency foreign currency through whom through an authorized person only through an authorized person through an authorized person for what for any capital account transaction short but exam we can draw our sell foreign currency only through a authorized person is there anything new we have learned here we have already known this authorized person is the only person from whom we can purchase and sell any person may draw or sell foreign currency through a authorized person this is section number subsection one how many subsections are there seven subsection 2 subsection two heading and subsection two RBI in consultation with central government Alban consultation with CG there are two kind of ways in which we can raise fun own fund and dead F what is own fund what is the examples of One Fund basically shares dead fund debentures or bonds or deposits all these going to come under debt fund now we here are creating only rules and regulations subsection two creates rules and regulations for debt instruments only for debt instruments and subsection two is given by whom RBI while taking recommendations and consultations from C Cal government so end of the day it is given by whom RBI but it is consulted from whether central government has any powers to modify the points no central government only has a power to recommend it but who has ultimate power to provide the points RBI RBI in consultation with central government is creating rules and regulations for what kind of instrument debt instruments only for the debt instrument they stated that what are the debt instruments in India which are permissible to be entered into like points who is who is notifying this RBI in consultation with central government has notified about what kind of instrument debt instrument they have a stating what are the all the types of transactions which are permissible in nature which can be entered into by the pris or pris involving the foreign exchange if it is involving foreign exchange whether RBI is concerned about such transaction and they're concerned about what kind of instrument debt instrument they're stating the list of debt instrument transactions which will be permissible by RBI if it is permissible can you enter into such transaction yes if at all it is permissible that means can I go and invest into debt Securities outside India can I go and invest into debt Securities outside India yes it is allowed I a person resident of India can go out of India and invest into a company's debt Securities whether it is allowed or not allowed yes it is allowed a PR can he go and purchase any kind of a immobile property or asset or any kind of a bond outside India yes it is allowed but if at all the permission is given to you and you want 100 billions of dollars to be purchasing outside India point $100 billion is not given to as a donation you have to pay what equal amount of rupees if you're able to pay rupes for example mes comes and states that I'm going to sell everything in India I'm going to give it to your RBI provide me money I'll go invest outside India whether you'll provide it it is permissible transaction right even though it is a permissible transaction there will will a limit on every single transaction for this transaction to be entered we are going to give only a particular limit above limit there is no possibility for you to get foreign exchange because end of the day which what must not be depleted are foreign ex cheer foreign Reserve must not be depleted in order to make sure that foreign exer is properly maintained and developed in India we have to make sure that we are putting limit on each and every transaction where we are prohibiting them or putting a restriction restriction whether transaction is permissible or not permissible permissible but only up to a specified limit then after providing the limit also if there are certain you'll understand these wordings later in detail first thing there are certain transactions which are permissible second thing we are stating that we are going to put a limit on those permissible transaction up to which you can draw foreign exchange from RBI from the Foreign Exchange Reserve after putting limits also we may impose certain kind of conditions because we are not only trying to provide you for an exchange but we are trying to generate Foreign Exchange in order to generate foreign exchange whether there must be turnover created RBI things in such a manner that if I'm providing you $10 there must be something written back to me as a for example example if you're investing into a security outside India after you sell the security bring back the money back into India that means that is going to increase for cheer Reserve again at the time of purchasing foreign exchange and providing you dollars but when you sell it at a later stage at a higher value bring the complete proceeds back into India limit the money back into India that means it is going to increase my Foreign Exchange Reserve there might be certain conditions which can be imposed three concept first concept who is giving this transaction we are in section number six subsection two who is notifying this RBI in consultation with where they are providing that certain transactions are permissible or prohibited permissible they are focusing upon debt instrument or equity instruments debt instrument they're stating that there are certain debt instruments Capital account transaction which are permissible but second point in just after saying that it is permissible they St that we are permitting them but we are going to put a certain limit up to which you can take a foreign exchange for the transaction after putting limits also we'll put certain conditions so that our foreign exchange is not depleted at a future date three key words go to n they're focusing on what kind of instrument debt instrument they're putting certain kind of limits on the forign exchange which can be drawn for the permissible transaction and third point they're putting certain conditions conditions are put in order to make sure that what is not depleted foreign ex cheer Foreign Exchange Reserve right areb in consultation with Cal government May specify first point D first point capital account transactions Capital account transactions involving involving what type of instrument involving debt instruments involving D instruments which are permissible or not permissible in consult with central government May specify capital account transactions involving debt instrument which are permissible we are going to permit certain kind of capital account transaction while permitting them whether we're going to provide any amount of limit or limited amount of for exchange second point and point B limit on Foreign Exchange change the wordings a little limit up to which limit up to which foreign exchange is allowed limit up to which foreign exchange is allowed allowed for are we going to allow for prohibited transactions or permitted transaction first point we have stated that there are certain transaction which are permissible for the same permissible transaction we are putting a limit the limit up to which for exchange is allowed for such transactions for such transactions I need no more permissible or prohibited permissible transactions last Point conditions conditions which may be which may be imposed on such transactions the conditions which may be imposed on such transactions this is subsection two subsection two of the the subsection next section will be done subsection to Clarity number first start here section number what is number six Capital account transaction section six has been divided into how many subsections seven first subsection states that any person can draw or sell foreign exchange foreign currency from whom from a only through a authorized person for what type of transaction we are referring to Capital account transaction subsection two states that a notification given by RBI rules regulation drafted by RBI in consultation with central government specifying how many things three things first the capital account transactions involving involving debt instruments which are permissible second Point limit up to which foreign exchange is allowed for such transaction only for per permissible transaction and the last point the conditions which may be imposed on such transactions we were only focusing upon debt instruments now other than debt instruments same process concept then opposite concept section two talks about only debt instrument next section we'll talk about not involving T instrument capital account transactions involving debt instrument is already covered under Section number subsection two now we are going to use the word not involving not involving what D instrument and the next section is done what the next section next subsection 2 a it's not three it is subsection 2 a opposite concept central government in consultation with RBI May specify May specify what capital account transactions not involving debt instruments which are which are permissable that means the equity instruments are taken care by central government debt instruments are taken care by RBI first point subsection two subsection two talks about RBI in consultation with central government which is talking about what kind of instrument de instrument now subsection 2 a capital A small capital A RBI sorry central government in consultation with RBI May specify Capital account transactions not involving that instrument which are permissible second Point limits after which foreign exchange is allowed for such transactions conditions which may be imposed on such transactions are we done section six subsection 2 capital a completion I'm ready now done materials close you will get confused based on the material close as of Bo last ventes books close CH material only focus on the examples and notes that's it section number six major part of section six is done section six talks about capital account transaction keywords is how many subsections subsection one ke in draw or sell foreign currency for exchange through whom authorized person subsection two talks about heading RBI in consultation with central government May provide what kind of instrument second Point limit third Point conditions subsection 2 capital a central government in consultation with RBI May specify not involving that instrument limit conditions then subsection three so subsection three thank God it is deleted it is deleted like two or three years back it was somewhere around three or four pages of subsection 3 only subsection is got deleted sub exam subsection 4 this is important understand this properly okay wait you are residing outside India you are residing outside India for the last 10 years okay in the year say 2010 you have gone out of India for employment in the year 2010 you have gone out of India for what employment until 2009 you were in India completely for 365 days for the financial year 2008 and 9 you'll be classified as PR I but for the financial year 10 and 11 you'll be classified as P because you leaving India going out of India for specified purpose if you're going out of India for specified purpose you'll be called as a p RI once you have gone out of India for employment you stayed there for close to 10 years in this 10 years whether you could have you would have purchased some kind of assets there Securities bank accounts Investments all those Securities Investments and assets which you have purchased when you were what P RI now today 2024 you are coming back to India you have left employment there you have settled everything and you're coming back to India the Investments which you have made previously are still held by you whether that is a capital asset now up until these 10 years we are not focused upon you because you are outside India you are classified as a POI a proi purchasing an asset outside India go back to the original definition section 2 e definition uh POI purchasing an or liability which is located outside India whether this concept is covered by section 2 section 2 covers only the process where if the assets liabilities are located outside India he must be a p i or if he's a p the assets or liabilities must be located in but what happened in these 10 years he was a proa and he was holding assets liabilities outside India are we concerned about it but now he's coming back to India if he's coming back to India today he'll be classified as PR again if he's classified as a PR he is still holding assets liabilities which are located outside India whether that is permissible yes he can still hold such kind of assets but this has been acquired by such person when he was classified as today he is a a PR can invest transfer or hold or own any kind of a capital asset a foreign security or foreign currency or a immovable property situated outside India but he can do so when he has acquired or held or owned such kind of property when he was a p r o i so initially he was a he has purchased certain kind of basically Capon transaction and R but today he's coming back too today he'll be classified as PR I he was holding that Securities he he was acquiring that Securities when he was PR or PRI can you continue to hold them can you continue to invest in those Securities can you coming can you after coming back to India transfer those assets or liabilities located outside India yes that is all permissible as per section number six subsection 4 I'll give wordings exactly subsection four starts with a today he is classified as what p r i previously he was classified as P oi a PRI PR May don't interpret the wordings until the sentence is completed okay parts parts you'll understand the sentence only when complete sentence is done invest own hold or transfer transfer any foreign currency a PR May invest own hold or transfer any foreign currency foreign security or a foreign currency foreign security or any immobile property imov property situated where situated where outside India he can do so if if he has acquired held or owned the same if he has acquired held or own the same ansers key Point start out when he was a e r o i he has acquired or held or owned such kind of properties when he was class class ified as what POI today he's classified as what PR can he continue to hold such properties yes can he come to India and transfers certain assets or invest into invest into assets or transfer assets key words focus a PR can he transfer immovable property situated outside India yes but if such immovable property is acquired by him when he was a PRI he can continue to do so without any permissions but today if you want to go and purchase it you have to get permissions from RBI if you today want to invest as a PR outside India you to get permissions from RBI otherwise you can directly hold them if you're already holding them you're already holding them but you have acquired them at what point of time when you are classified as PR May four words PR invest own hold or transfer any kind of foreign currency foreign Securities or any immobile property situated outside India but if he has acquired held or own the same these properties when he was a p i at least exam point of view I want you guys to write these words the Securities PR when he was a PRI a hold own own transfer invest at least concept what words must be important today is PR he's holding some kind of assets those assets are foreign security foreign currency or immovable property situated outside India but he's acquired them got got to own these properties when he was PR oi this is subsection subsection 4 same point man okay single concept manik left India he left India to where he left to Nigeria for certain perod or uncertain period if he's going out of India for uncertain period of time he is classified as P or POI he settled in Nigeria then later stage his son comes to India for his studies his son comes to India his son only only India his son comes to India for what purpose studies and he's staying in India for the last 3 four years if he's staying in India he's classified as he if he staying in India is classified as PR manik is outside India he'll be classified as we o i he's staying outside India he's classified as a p his son comes to India for study purpose he's staying in India for the last three years he has been classified as a p r i unfortunately manik one finded dies example Focus I'm going to change the example manik and his wife died May you going to focus and his wife both of them died and now imagine this properly guys manika has been settled outside India for a number of years now whether he had assets outside India now after his death whether his assets will be inherited by his son but his son is located now in India basically son has indirectly acquired certain asset outside India but it is not acquired when he was a p oi but this definition as of now whatever written is not satisfying the provision because he's today what PR a PR is acquiring a foreign security or immobile property which is situated outside India for the clarification theed on the point or inherited from a p oi either you are purchasing them when you were a PRI or you are acquiring those kind of asset from a person who is a P that means inherited sorry P oi inherited from P oi sent are inherited inherited from whom from p r oi 90% of section is done with this point point clear subsection books close sh I want the wordings from subsection 1 to 4 1 to 4 basic 7 section number section number talks about definition of capital account transaction given under Section number two e then clarifications under Section number six section six is divided into how many subsections subsection one talks about a process where any person can draw or sell foreign currency through a authorized person for a capital account transaction subsection two RBI in consultation with May specify three things first involving de instrument which are permissible or non permissible permissible second Point limit of for exchange third conditions subsection 2 capital a central government in consultation with RBI May specify three things again not involv that instrument limmit of forign exchange conditions subsection three excellent subsection four this is important a person today is a who is Simple transfers transfers what foreign currency foreign security or immovable property situated but if the same was acquired or held by him when he was a P oi or inherited from a person who is a p oi now this is subsection can you write subsection five which is exactly opposite to this exactly opposite wordings P R O I may invest own hold or transfer any Indian foreign currency PR PR and foreign currency Indian currency or Indian security or any immobile property situated in India if he has acquired held or own the same when he was a p i or in her random of session five I'm L on M and that's complete ch what are the difference between subsection 4 and subsection five what is the difference between subsection 4 and subsection 5 starts from starts from p r oi holding what either Indian currency or Indian security or immobile property which is situated in in India when he has acquired such property when he was or inhered from PR I we C on this next subsection six we are in section number section number six subsection six subsection six number first subsection 6 very simple go back to section 2 V what is section 2 V p r i PR means it is divided into how many categories four categories first category talks about individual next three categories talks about artificial person give me the definitions of artificial person three two three and four two a person or a body corporate incorporated or registered in India or outside India in India next Point office office branch or agency situated where outside India owned or controlled by or office branch or agency situated in India owned or controlled by PRI so I'm going to use those wordings office or a branch or an agency which is controlled by P oi first classify this this is classified as P or poi e r i there is an office or Branch or agency which is established in India which is owner controlled by PRI a sentence M can I simply say it is a PR now it is going to come into India a business activity which is set up in India owned or controlled by a person resident out of India whether they're going to come and carry on business in India the way they are carrying on business in India is going to affect the Indian market they're going to take back Indian rupees or dollar convert them into dollars and take back the money back to their countries whether it must be properly regulated who will regulate all these activities RBI starts with the RBI RBI by a regulation May provide for the way in which these persons will carry on their business how to carry on the business when you're establishing office branch or uh agency in India if you're having office branch or agency in India belonging to whom PRI you can establish but that establishment carrying on business of such establishment will be regulated by whom RBI RB RBI May in certain situations prohibit such kind of investment RBI in certain kind of invest procedes they can restrict or they can regulate they can allow but they will regulate they will keep a monitoring on such kind of Activity three words go RBA by regulation May prohibit completely or don't allow it or restrict or regulate regulate what an establishment which is owned by PRI why are we regulating for the business activities which are carried on in or outside indiaia for those business activities which are carried on in India we're going to regulate that kind of entity these regulations are given by whom RB subsection six subsection six only states that if any person comes to India and does business in India the business activities in India will be regulated by RBI last seventh point last RBI and RBI May by a regulation RBI May by a regulation prohibit RBI May by a regulation prohibit comma restrict or regulate an establishment establishment by by whom E oi for for what purpose for carrying on business for carrying on business business where in India relating to relating to what the office branch or such agency will create restrictions or prohibitions on establishments by PRI for carrying on business in India relating to such office branch or agency office branch agency bus activities then last subsection 7 subsection 7 is basically a debt instrument clarification they only stated that what is that instrument subsection 7 states that de instrument means they explain the de instrument here de instrument was used under which section subsection two which was a notification given by RBI in consultation with debt instrument means an instrument what is debt instrument as may be defined as may be termed as may be determined instrument means an instrument as May determined determined by whom central government in consultation with RB they have not given the definition as such they only stated the central government will do give the definition they have not given our syllabus also sub section 7 section number six is done from here I want all the seven points to be remembered only each point keyword create first point first keyword draw sell from authorized person second Point RBI de instrument limit conditions to Capital a CG in consultation with RBI not involving dat instrument limits condition subsection three subsection four PR but when he was a or inherited from P oi subsection five P oi but when he was or inherited from PRI subsection six talks about a establishment by PRI which is carrying on business activities in India that business activities which are carried on India will be regulated by RBI subsection 7 states that that instrument has been defined that instrument means instrument as may be determined by central government in consultation with RBI open your books Mater open page number 6.8 page number 6.8 first section two we're done with the first two parts definition and clarification definition section number first line Capital transaction means transaction means a transaction which well second point the assets are they're located where outside India belonging to a PR why is last Point assets or liabilities con liabilities section number six app on transaction clarifications keywords keyword first draw sell foreign exchange through a authorized person draw sell foreign exchange foreign currency through whom through authorized person second Point RBI in consultation with involving what that instrument we are putting a limit up to which for exchanges allowed and we are putting the conditions we may provide conditions done next subsection two capital a CG in consultation with involving or not involving not involving that instrument we are putting limits and two and two difference are in consultation with central government in consultation with RBI that instrument not involving that instrument then subsection 3 is subsection four initially he now he's a PR he's owning or acquiring such kind of capital asset when he was or he has inherited from PR these are just examples of what are the asset what all assets that can be just go through them next fifth Point fifth subsection he was he is today he has old or acquired such kind of Indian Securities or Indian currency when he was a are inherited from ER I next subsection six RBA is giving restrictions prohibitions and regulations on establishment which is situated in India or outside India establishment in India by whom P oi for what purpose for carrying on their business activities for carrying on their business activities relating to such branch office or agency last point last subsection that instrument which are what do you mean by De instrument such instrument as may be determined by in consultation with RB out and you have to remember all the seven points section number sub sections 7 okay Med permissible transaction 11 points and permissible transaction for POI 8 Points 11 points 8 points I automatically 11 points Focus CH and I want the same order to be remembered in the exam also this is we are going to start permissible transactions for e r i schedule number schedule number one shall we concept first clity discuss first we have studied section number then section number by this we are done with the capital account transactions in the act now we are jumping to the rules forign Exchange Management capital account transaction rules 2,000 this rules have given three categories what are three categories permissible transactions transaction with no restrictions prohibited transaction per ible transaction is again divided into two categories for PR and PRI for PR it is given under schedule number one has which how many points 11 points first point what do you mean by Capital transaction now focus on Capital transaction for PR what do you mean by Capital account transaction for a PR which is altering altering what assets or liabilities including contingent liabilities outside India of PR that means we are going to focus on foreign Securities or Indian Securities foreign Properties or Indian properties foreign loans or Indian Loans everything must be focused from foreign point of view belonging to whom PR so we focus for the next 15 20 minutes must be on a person who is PR but the assets or liabilities which are located outside India first point investment line investment in Securities what kind of Securities Indian Securities or foreign Securities if you acquiring selling transferring any kind of a foreign security that will happen to be a cap account transaction and that is permissible or prohibited that is permissible first point under schedule one investment in foreign Securities next Point other than foreign Securities accounts basic soci forward contracts future contracts those are called as derivatives we are undertaking we are not purchasing directly a foreign security outside India but we are entering into a underwriting sorry we are entering into a derivative contract what do you mean by derivatives which derives it value from underlying asset from some of asset it is deriving its value it is called as an undertaking undertaking meaning also but just assume that it is kind of a security which deres its value from some other source this undertaking either you are investing into foreign Securities or you're entering into underwriting sorry derivative contracts it is still considered to be a capital account transaction next point right second Point undertaking what kind of contracts derivative contracts both the points are related to each other first point foreign Securities second Point derivative contracts basically we are investing into Stock Exchange of any outside country okay if you are having money in your hand if you're having dollars in your hand can you invest in foreign Securities can you go and into derivative contracts other than these two what can you do in the foreign area to purchase a capital asset asset May Focus CH what can you purchase land land is mobile or immobile immobile immobile properties located where outside India but we are PR or PRI a PR transferring a immobile property located outside India don't get this confused here immobile property situated where outside India where transferring imob property means we are selling IMM property IM proper transing there was a student last time final topic transferring imov property means how can you take imov property from India to outside India what do you mean by transfer there sell selling of imov property which is situated where outside India held by whom owned by whom PR so these are the three major Investments which can you you as a PR can do which are permissible or prohibited permissible right transferring transferring what transfer of immovable property situated where situated outside India by whom who is doing this transfer by a PR first three points set my three points next four points disc first three points schedule number Capital account or current account permissible or prohibited P or POI Capital account transaction which are permissible for a PR given under schedule number one which has how many points 11 the first three points first investment in foreign Securities undertaking derivative contracts foreign to the to went derivative contracts then next transfer of immobile property situated transferred by p i next we have done with the assets part next part liabilities can we take loans can we take loans yes we are taking a loan I'm going to change the order here right number first I'll explain then we'll directly write wait we are PR or PRI we are located in India or outside India can we take a loan from outside India we are taking loan from P oi he's going to provide the loan in which currency if he's providing in foreign currency whether we are bringing in foreign currency into India and it creates an obligation for us to pay the money also in foreign currency whether foreign exchange is involved whether it is a liability or an asset whether liability is created whether it is a capital account transaction yes Capital account transaction entered by whom PR PR is obtaining a loan a loan or overdraft obtained by PRI from P oi same case we are providing a PR is providing loan to a person outside India that means he's going to give the loan in which currency foreign currency he's going to receive the loan back in foreign currency and convert it into Rupees now he's involved in a process where he's giving loan or taking loan giving loan now answer this loans and overdrafts loans and overdrafts first give me this example loans and overdrafts by ER from P oi we have borrowed money next concept second example loans and overdrafts by P start from PR PR to P oi what is talking from P POI and to poi the basically we taking a loan giving a loan if you're taking a loan it's is a liability or an asset if you're giving a loan it is a it is altering asset of liability if is aling asset liability which is located outside India Capital asset whether this is permissible or not permissible permissible 2 points first loans and overdraft loans and overdrafts by P I from next Point loans and advances loans and overdrafts by p r i 2 E oi if you are get getting confused in this simp bracket borrowing and lending first point loans and overdrafts by PRI from P we are borrowing next Point loans and overdraft by PR to PRI Lending so these loans are created in India or outside India these loans and advances assets are created inia or outside India outside India next Point next point right loans still talking about loans what else is left giving and taking back what else is left out repayment is covered a later stage that is there but covered at later stage whatever what else is left about loans loans by PR loan loan by PR it is already covered loans taken by PR from P where it is already covered yes it is already covered but here we are focusing upon the foreign currency loans taken by PRI either in India or abroad he can take either foreign currency loans in India itself we can go to any foreign bank and pro take a foreign currency loan you can you are taking Loan in which currency directly foreign currency that is in done in India or outside India you are taking that from a bank that is in India that means this bank is PR this time you're entering transaction between two pris but you are taking what kind of currency foreign currency right wording foreign currency loans simple loan or foreign foreign currency loan foreign currency loan for loan taken by whom by PR either in India or outside India 3 point first loans and overdrafts by R from P oi next Point loans and Advance overdrafts by PR to P oi last Point foreign currency loans by PR either in India or outside India abroad so taking loans is basically creating an asset or liability for us that is permissible or not permissible permissible I'll give you situations whether tell me f exchange applies or does not apply PR dealing with PR where they have taken a transaction in rupees they have taken a loans or overdraft in rupees whether foreign exchange applies here whether capital account transaction applies here a PRI entering into contract with P oi but taking amount in rupees foreign exchange is involved no if at all the PRI has entered into contract for giving loan providing loan to a PRI but in foreign exchange Curren foreign currencies he's now taking loan he's entering into contract with a person who is resident in India itself but is entering into contract for what purpose a foreign currency whether it is involved three points P oi enters into contract with another POI PRI enters into another contract with POI for any loan in dollars whether foreign currency is involved whether foreign exchange is happening whether we are involved in this process whether it is a capital account transaction no but this POI happens to be our family member for him we have given a guarantee if he doesn't pay the money at a future date obligation shifts on us and we have to pay in which currency foreign currency we are not taking loan directly but we are providing for a loan a guarantee for loan taken by whom P oi for a loan which is taken up by POI we are providing a guarantee if he fails to pay the money at a future date who has to pay the money PR that means PR has to pay in dollars or rupees whether the foreign exchange is involved next Point providing a guarantee providing what guarantee in favor of Home providing a Guaranty in favor of poi difference guarant loan previous three points we were focusing upon the loans directly entered by us the pr words obser loans and overdrafts by PR loans and overdraft by PR foreign currency loan by PR everything we were involved in it next point guarantee we are not involved in the loans and overdrafts but we are back end at a stage we are giving a guarantee the guarantee provided by whom PR in favor of PRI that means loan is taken by PRI if he makes a default who has to pay M money is indirectly cre liability for us we will be involved in the capital transaction 7 point out first three points investm Securities derivatives immobile property next the Four Points regarding loans loans taken by us loans given by US foreign Cy loans in India and guarantee provided s points books close 7 points next points which section we are in section number six half section IP schedule rules are act what are the rules Co Exchange Management cap transaction rules 2000 under rules we are under permissible transaction which are divided into how many categories two schedule one provides about what PR permissible transactions by PR schedule to permissible transactions by P oi how many permissible transactions for PR I 11 points first point that's not that you have to remember but at Le strike first point first points Investments out first investment in foreign Securities undertaking derivative contracts derivative along with foreign security then transfer of immobile property situated outside India by P three points done then next 4. regarding loans loans and overdraft by PR borrowing or lending B next Point loans and overdraft Bing or lending next foreign currency loan obtained by whom PRI either in India or outside India if he PR that means it's going to obviously affect the foreign ccy loans loan is taken in Indian currency or foreign currency so next three points four five and six talks about loans taken by entered into by the pr then what about seventh point guarant a guarantee provided by PR in favor of P oi if the person doesn't pay if the P doesn't pay who has to pay this amount PR has to pay this amount in which currency is that going to deplete our foreign ex whether it is going to impact capital account transaction or current account transaction capital account next eight and N Go back to section six subsection four section section four he's today he's today is owning investing or holding foreign security foreign currency or immovable property situated if the same was acquired or held or owned by him when he was p r oi or inherited from PRI that means he has acquired an asset when he was POI now he has come to India and has now been classified as if the asset is sold he's going to bring back the money he's going to bring back what dollars or Indian rupees dollars of foreign currency will be brought back now he states that I'm not going to invest this money in India I'm not going to invest the money so received back in India I'm going to invest again outside India so what happens is he is not going to come and what happens normally is PR whenever receives a dollars he has to go through authorized person RBI sell the dollars get what rupees but at later stage if he wants to invest money outside India again he wants what dollars he has to go back to the authorized person sell rupees uptain W other than doing this all procedures I'm going to maintain dollarss in a separate account that is called as a foreign currency account where amount in the bank is maintained in which currency foreign currency we normally maintain bank accounts in which currency Indian currency if the same bank account is maintaining your foreign currency in it then it will be classified as what called as what foreign currency account any maintenance of foreign currency account by a PR will indirectly amount a foreign exchange he is going to use the money for purchase of any kind of asset liability or at a future date or even even bank balance is considered as an asset maintenance of what account what type of account foreign currency account right maintenance of foreign currency account account by whom rasar what's the eighth Point maintenance of foreign currency account by whom P next point if you're having this foreign currency account can I say you're having access to Dollars yes or no if you are giving dollars to any person outside India for investment purpose can I say asset is created foreign currency can this foreign currency be taken out of India and invested directly yes if you're investing through your foreign currency account can I say you're exporting foreign currency you're using the word export or import of foreign currency currency notes whenever currency notes are exported or imported it is indirectly involving foreign exchange because Indian currency cannot be exported out of India uh Indian currency cannot be imported because nobody has outside India Indian currency in their hands whenever currency is exported or imported sent out of India or brought into India it will be always a foreign currency or Indian currency because a person who is outside India cannot be have expected to have what currency if we are importing currency what currency will be brought in foreign currency if you're exporting currency they will be requiring foreign currency we cannot send them rupees we'll be exporting what kind of currency foreign currency next Point export or import what is export what is export anything taking out of India Import means anything which is coming to India export or import of currency currency notes last two points nth point in export or import of currency nodes we are sending currency or bringing currency into India last two points independent points on May when aare about insurance insurance contract what happens in insurance contract how many parties two parties are there one the insurance holder and the insurance company say you are taking an insurance you're taking a life insurance what happens in life insurance you have to pay premium on a yearly basis you're paying premium to the insurance company where insurance company is providing you a service service and Assurance stating that if a loss occurs to you I'll compensate the loss old students get the inity contract basically what happens here in the inity contract inif fire and inity holder we're going to pay premium to him uh amount will be paid and this person is going to provide you a service service of insurance Serv stating that I'm assuring that whatever loss occurs to you at a future date that loss will be compensated that loss will be protected by Insurance Company this insurance company if at all this transaction has been done completely in India life insurance has been taken and it is done in India for example Rohit has taken a life insurance of say every year he has to pay a premium of 10,000 and if at all he dies we'll get a premium of say 10 crores okay Rohit first year paid a premium of how much amount 10,000 to the insurance company this 10,000 rupees is been paid and second year also I paid premium third year it di he died and we are receiving a insurance policy amount how much policy amount will be received 10 which is also in E transaction because of this transaction tell me whether for next Checker is affected increase G decrease G same case this insurance compan is located outside India this insurance company is located where outside India we have taken insurance policy from insurance company situated outside India now we have to pay premium in rupees or foreign currency we are going to receive the policy amount in a foreign currency uh insurance taken by insurance policy taken by a PRI from insurance company which is situated taking insurance policy by whom from where from insurance company situated outside India insurance policy by PR from insurance company situated outside India last point last Point simple immob property has been sold where is imov Property situated immob property has been mean sold or we have entered into derivative contract we had received x amount of money we have sold our foreign Securities outside India once we have done these activities whether we'll be having dollars in our hand whether those dollars will be brought back to India brought back to India means repatriation put on the word reparation remittance remittance of any amount by Capital asset any Capital asset has been sold and the capital set has been remitted back into India or remitted out of India going out of India whether involve foreign exchange remittance of what any Capital asset Capital set what do you mean by Capital set normally they have not define capital asset but for your understanding what do you mean by Capital asset any asset basically fixed asset like this anything which has more than one year value anything which is having a material amount of value is called as a capital asset remittance of capital set sorry points we'll come back and write the points okay book CL all eight points will be derived from these 11 points itself Focus 11 points first will see and read from the concept then you'll recite it later heading discuss for PR given under schedule one how many points first point first point investment in foreign Securities second Point undertaking derivative contracts foreign Securities and derivative contracts then transfer of immobile property situated outside India by PRI Investments done next four points relating to loans loans and overdraft by PR from borrowing or lending next loans and by to lending next Point foreign currency loans by PR either in India or outside India loans are done but we are not involved in a guarantee contract a loan contract is entered by P R oi for which we have given a guarantee giving guarantee by PR in favor of in favor of a PRI they done with the first three points and next four points seven points done next two points relating to currency if the currency has been if the assets have been sold outside India we're going to bring back the money into India the bringing back of money into India will be held in which currency dollar there is a chance that you can directly convert it with RBI and deposit in the Forex Checker or you can deposit into a foreign currency account maintenance of foreign currency account by PR after maintening can you send it outside India exporting or importing foreign currency into India is considered to be a capital account transaction which is permissible or non permissable any points first three points then four 7 points then two points foreign currency account and import export of foreign currency nine points last two points 10th Point Insurance who is taking Insurance taking of insurance policy by PR from insurance company situated outside India last Point remittance of remittance of capital asset 2 minutes complete scheduled break isan then we'll start other transaction schedule two we start schedule two after the break itself answer TR first you can revise it later you will revise it but as of now at Le try answers discussing about schedule number one app account or current account permissible or prohibited for PR or POI how many points first point investment in foreign Securities second Point undertaking derivative contracts third Point transfer of immovable property situated outside India by PR fourth Point loans and overdraft by PR from PRI next Point loans and Advanced lending next foreign currency loans by either in India or outside India then guarante is given by PR in favor of PRI seven points done next two points relating to currency maintenance of foreign currency account export by PR then export or import of foreign currency by PR next 10th Point insurance insurance policy taken by from insurance company situated outside India last Point remittance of capital asset Capital asset has been remitted into India or out of India it is considered to be a capital account transaction which is permissible or non-permissible PR PRI permissible transactions for PRI schedule number capital or current account transactions permissible or prohibited permissible now we are on schedule two which is for the P oi how many points eight points eight points sh modify CH for the first point under schedule one investments in foreign Securities it is done by whom investment is done by PR schedule one was focusing upon the capital account transaction which are done by PR where the assets are liabilities are altered in India or outside India outside India now same point convert for a p I same point as the first point convert CH for POI investments in Indian Securities either he can invest into Indian Securities or he can invest into Indian businesses also two points add in Investments done by a PR oi in the Indian Securities relating to a body corporate registered in India or he can directly invest into a partnership firm he can directly invest into a Association of persons he can directly invest into a proprietorship these Investments are allowed allowed allow we are accepting foreign curency into India logic foreign curency comes into India whe is beneficial for India dollar Reserve will be increased business activities will increase technology will be brought into India by Foreign citizen whether foreign resident whether it is beneficial for India so first point wording s Investments Investments by P oi in Indian securi body Cates our second Point investments in the capitals of partnership firms body options proprietorship either partnership firm or aops what is aop Association of persons so we have copy pasted the first point second Point what is second Point under schedule one who is undertaking derivative contracts schedule two undertaking derivative contracts by PR right next Point transfer of immovable property situated situated by P third Point done 3 points now three points copy past some next next Point loans and overdrafts by P R oi from p r i next Point loans and overdrafts by p r or IND currency loan taken by yeah but they have combined all these three points and they simply stated deposits depits made by with a PRI or POI with a PRI basically it is a transaction between a resident and a non-resident where deposits are made that means indirectly for exchanges happening so deposits made by PR with PR or vice versa PRI with a PRI where PRI is involved in the process of transaction with PRI with deposits loans deposits so combining these three topics we are going to only use one point under schedule two deposits four first investment second derivatives then immobile property loan 3o combine JC we have given only one point deposits are we clear with the Four Points next continue next Point providing guarantee in favor of who is providing Guaranty PR oi in favor of PR then next maintenance of foreign currency account here exact same wordings foreign currency account is maintained in India that means he's bringing in Dollars into India if he's bringing dollars into India whether it is having a foreign Exchange impact yes next Point export or import of foreign currency notes who is doing this export or import and foreign currency account it is done by any person either P or proi whether there is foreign exchange if there is foreign exchange whether Foreign Exchange Management act capit account transaction will apply yes next two points same exact copy basted maintenance of foreign currency account and Export or import of foreign currencies next Insurance Point has been removed Insurance Point ignores and the last point remittance of capital asset we are done with eight points eight points IP first differen loan three points combine one deposits insurance was ignored all the other points will be same don't open your books we done with schedule one and schedule schedule one talks about yeah give me the keywords first point foreign Securities second transfer of loans which are raised in foreign currency loans or Indian currency foreign currency next loans and overdrafts by R from loans and overdrafts by PR to P oi then guarant is given by PR in favor of a p oi then foreign currency account maintained in India export import of foreign currency notes insurance policy taken by from insurance company situated remittance of investment in foreign investment done by whom POI investment done by poi we'll do one thing points it was not done intentionally but it will be useful for us now 8.7 schedule two is permissible transactions for PR only heading St first point investment second Point derivative contracts third Point immovable property situated in India or outside India in India fourth Point deposits between p and p oi next fifth Point loans points next Point guarant guarante given by P oi in favor of p i good next six point foreign currency account then export or import of foreign currency currency notes then eighth Point remittance remittance out of India of a capital asset are we clear so eight points 11 so we are done with the third category also first category definition section number 2 then clarification section number six then permissible transaction for PR under schedule one peris transaction for PR under schedule number two we're going to start now prohibited for PR only one and two notifications simple point I know I know your brains are not working that's why simple topic rap complicated topic P prohibited transaction that is important as well rap discuss Sham this is simple topic we are discussing what prohibited transactions for whom 5 to 10 minutes very easy topic but Ling this is important for your important but easy important it is easy to understanding private transaction for how many transactions are there only one transaction they simply State they start with a negative sentence they start with a negative sentence stating that no person resident in India no person shall draw sell deal in any kind of Foreign Exchange involving a capital asset capital account transaction simple first line is prohibiting everything they simply stated that no person shall draw sell or invest or hold any kind of foreign exchange or foreign Securities or any kind of foreign assets said except when he is a p following the condition so process starts with a negative sentence everything is prohibited but it is allowed in one particular situation where first of all he must be classified as a PR if he is classified as a PR he is allowed to be having capital account transactions but which transactions are allowed prohibition because sentence starts from a negative criteria where it states that everything is prohibited unless this point is allowed this particular point is allowed only one point for whom that to PR PR is allowed to enter into Capital account transaction for only one situation that is first thing what are the transaction which are allowed what are the transaction which are allowed allowed in a word March is it also permissible transaction that means what is allowed for a PRI schedule one transactions all the schedule one transactions are allowed permissible for a PRI now that means if the PRI comes to you comes to RBI for purchasing immovable property outside India whether RBI will allow yes RBI is focusing upon go back to the basics of Farah and FMA Farah was rigid about what activity everything every single transaction under Farah was prohibited rigid upon it but FEA is also rigid FEA is liberalized about transactions but they rigid about the disclosures whether disclosures are important I'll provide you fore an exchange I'll provide you foreign currency but only when you provide me a proper disclosure now when you go to RBI you have to provide the disclosure why you taking this foreign currency yes problem I'm going to permit it I'm going to allow you to do a foreign exchange transaction but imagine this India is having 140 crores of population India is having how many 140 crores of population you can deal in capital account transaction you can buy or sell fore an exchange only through a authorized person section 6 subsection one only through authorized person there are close to somewhere around 200 authorized persons in India 140 crores population 200 authorized persons if each and every person 140 crores say you may argue stating that 140 crores are not involved in foreign exchange sir majority of them are only in dealing in only in Indian currency say 10% of this or even 5% % of it 7 crores on 365 days of a year these 7 CR individuals if they are dealing with foreign exchange how many approvals are required and how many authorized persons are there is it practically possible for RBI to establish authorized person equal to our population no not possible then they have stated that it is not practically possible for us to disclose everything for you to disclose everything for every single transaction we are going to give you a blanket rate we're going to provide you a blanket rate no requirement of permission no requirement of any major disclosures we are allowing you to take a foreign currency in a financial year up to do 250,000 $250,000 rupes dollars if you convert that that will be somewhere around 10 crores that to in a which year in a financial year for each finan the RBA is providing you dollars to 250,000 under a scheme called as lrs what is lrs Li liberalized remittance scheme I'm going to provide you take the money out of India take the money out of India I'm going to provide you this 250,000 is used for which transaction permissible or prohibited permissible I'm going to provide you but you have to use the money only for permissible transaction which are mentioned under schedule one those schedule one transaction can be entered by you without any disclosures up to how much amount 250 now imagine this properly tataa company wants to invest outside India 10 crores for tataa company establishing a business outside India possible 10 but for such kind of company T is Incorporated in India if it is incorporate registered in India that body corporate will be classified as PR that PR under schedule one is permissible to invest outside India but up to only how much if you want to invest more than 2.5 lakhs can you do so yes yes you can do so blanket rate is how much 2.5 without any disclosures but if you want to go beyond this 2.5 lakhs you are still allowed but you have to get a permission from RBI so RBI permission is required are not required up to 2.5 they have given this as a blanket rate this changes from year to year initially it was 1 lakh then they have increased to 1.5 lakh then they have decreased to 75,000 now they have increased it to 2.5 lakhs this increase or decrease is basically to maintain the Foreigner foreign balance I'll provide you more money I'm going to be more liberal on it for I'm going to reduce lrs also depending upon the foreign RBI can change it from time to time as on to dat is how much 2.5 lakhs 2.5 lakhs of dollars rupees K dollars will be provided to you under lrs scheme for those transaction which are permissible or prohibited permissible so for this transaction whether approvals of RBI required or not required not required if at all you're increasing if you're going Beyond this 2.5 lakhs whether approvals are required yes and for all the schedule one transactions there are specific limits in certain situations we'll discuss that later for transaction for specific transactions also there are limits for example at a later stage we'll discuss this syus but I'll explain this later also a PR can go out of India and give a gift out of India gift Chase for economic activity whether it's going to generate something back to India no it's a non-economic activity a gift has been restricted to a maximum of $5,000 gift is restricted to a maximum of how much $5,000 you can provide a gift outside India but you can spend how much of a maximum amount 5,000 if you want to spend more than 5,000 you to get an approval from RBI now if the limit properly understand this if the limit of 2.5 lakhs has already been depleted used upon by you and you want to give a gift and you want to give a gift of 3,000 whether it is within the specified transaction limit it is within the specified transaction limit whether approval of RB is required or not required no specific transaction limit if it is exceeding if say this is 8,000 with approval of RBI is required yes approval of RBI is required when two things are happening when you are exceeding your lrs limit and you're exceeding the specific transaction limit if both the points are exceeding then you have to get an approval from RBI I'll give you different situations answer this we have in this financial year gifted an amount of 8,000 and we have done no other lrs transaction whether approval is required or not required no because it is within the lrs without the permission also you can take how much amount of money 2.5 lakhs 2.5 lakhs can be used for gift also there is no requirement of permission in the same case we have exceeded 2.5 lakhs and for the gift we are taking only 3,000 where the permission is required not required calculations only for your understanding there are two kind of transactions here first blanket rate for any transaction which is permissible take how much amount 2.5 lakhs but there are certain situations the certain situation where specific transactions are also given certain limits if you're exceeding the specified limits then take an approval from the RBI now this limit is given for P or POI so PRI from the foreign cheer every year can be availing how much 2.5 is going to provide you only on Exchange basis R is provide you $2.5 lakhs doll dollars in a each Financial year for say for the complete Financial year at the beginning you made investment in immovable property can you make investment in immovable property situated outside India yes you made investment amounting to $1 lakh anything your limit for the remaining part of year would be 1.5 if you have made any investment during the financial year that will be reduced from your lrs limit and remaining amount will be be allowed to you as a liiz remittance scheme for the remaining part of year that's it PR point PR specific go Point discuss use it for prohibited or permissible transaction permissible transaction are mentioned under and for the pr they have given certain notifications notifications are given by two kind of people here these words are new for you properly listen we have given notification for the prohibited transactions to be entered by PR it is given by a force task force called as fatf and government of India first FF Financial action task force FF full form Financial action task force which is basically set up for it is basically set up under pmla act prevention of money laundering act where the major task of FF would be to identify those areas which are outside India okay proper imagine MAA he made a fraud activity he made a evation of loans from SBI and he absconded from India he was staying where he was staying where outside he was staying in UK Indian government had made efforts to bring him back to India or take him into the Indian government custody but which was not allowed by the UK government there are certain entities certain jurisdictions voice there are certain jurisdiction which are located outside India which are not Cooperative with the Indian government for any kind of international frauds and transactions those areas will be classified by fatf fatf classifies those countries which are non-cooperative non-cooperative countries if you are investing anything outside India or if you are taking a liability outside India from such non-cooperative countries there's a higher chance that that amount will not come back to India at a later stage because they're not want to cooperate for the assets or selling or distribution then investment in those areas are prohibited for a PR PR simple one line answer PR is not allowed to do a capital account transaction in the non-cooperative countries as notified by fatf as of today they have not notified anything now notifications UK is also considered to be cooperative country itself as of now they have not given any notification but if they are giving notification keyword notification will be given by and they're going to notify a country as Cooperative or non-cooperative non-cooperative with what the Indian Country for any kind of those activities they're considered to be they're termed as what non-cooperative countries in noncooperative countries transaction on the we are not allowed to enter into any Capon transactions in these non-cooperative countries as of now nothing is disclosed first part is done second part it is a notification given by government of India or Ministry of external Affairs Ministry of Home Affairs and Ministry of external Affairs home Affairs Tak takes care of Indian activities external Affairs relation with outside geopolitics government of India or the ministry of external Affairs by notification May state that certain countries are non-cooperative same logic FF now it is a notification passed by government of India and Ministry or Ministry of external Affairs external Affairs they have notified a country as of now they have notified a country country's name is not at all matching with the countes what we know as a country country's name is democratic People's Republic repic of Korea basically North Korea Democratic there are far away from democratic country but they call themselves as they're completely a communist country but they call themselves as Democratic Democratic People's Republic of Korea example North Korea North Korea man refer some they refer themselves as what a democratic People's Republic of Korea this country is cooperative or non-cooperative now any Capital Transaction what is one line anwers This is notified by whom government of India or Ministry of external Affairs have notified this country to be non-cooperative where the capital transaction are allowed or Pro prohibited prohibited so the wording starts with no PR no PR shall enter into a capital account transaction with with the person who is resident in or with the person who is citizen of or with an entity which is registered in three points coverm a person who is resident of that country a person who is citizen of that country or the entity which is registered in this particular country what's the country's name Democratic People's Republic of Korea a person who is resident of that country a person who is citizen of this country or entity which is registered or Incorporated in this country these three people we cannot enter into cap transaction with these three people completely prohibited you doubt in now we this was a notification brought in by government of India government of India this one as of now government of India brought this notification you made a investment in North Korea before this notification was even released not ification already Investments you already have a capital transaction with a resident outside India in North Kia with the notification at the time of your investment where the notification was released after notification is released can you go and enter into capital account transaction which is prohibited but you have entered into transaction with them before the notification what it is so government of India states that if you are already having any kind of investment close it liquidate it dissolve it within 180 days from the Earth notification within the date of within how much time 100 days from our notification close all the Investments bring back the money dissolve it liquidate bring back All the Monies which are situated in that particular country any Slama from where from the notification dissolve everything liquidate everything sell everything transfer everything bring back into India we done with PR prohibition PR prohibition two parts first lrs discuss some any transac combined two notifications notification given by FF notification given by government of India and Ministry of external Affairs FF will state certain countries which are non-cooperative the Investments done by pris for Capital account transactions in these non-cooperative non-cooperative countries is prohibited and government of India has notified a country today what is the country's name Democratic People's Republic of Korea North Korea investment in North Korea with a resident of North Korea or citizen of North Korea or entity which is registered Incorporated in North Korea is completely prohibited but if you have already holding such investment before the notification has been released you have to withdraw liquidate dissolve bring back the money transfer it within 18 days from the date of such notification these are the prohibitions on whom PR or PRI PR I then we still have prohibitions on ER oi how many points Five Points we are still left with sorry we still left with what these five points and these three points thank you