If a FEMA (Foreign Exchange Management Act) filing (FC-GPR (Foreign Currency – Gross Provisional Return), FC-TRS (Foreign Currency – Transfer of Shares), FLA (Foreign Liabilities and Assets), ODI, LO/BO reporting) was late or missed, the contravention can be regularised by applying to the RBI for compounding — a formal admission and payment of a compounding amount, which closes the matter.
Who needs this
- Companies that discover missed or late RBI filings, usually during a fund-raise due diligence, an audit, or on receipt of an RBI/AD-bank notice.
- Companies with structural breaches — shares issued before the money arrived, pricing below the FEMA floor, downstream investment not reported.
What we do
- Diagnose every contravention, quantify the probable compounding amount under the RBI's published matrix, and first regularise the underlying filing (late-submission fee where available).
- Prepare and file the compounding application on the RBI's PRAVAAH portal under the Foreign Exchange (Compounding Proceedings) Rules, 2024, with the ₹10,000 (+GST) application fee.
- Represent you at the personal hearing and ensure the compounding amount is paid within 15 days of the order.
What you receive
- Contravention analysis memo; filed application; RBI compounding order and closure.
Key deadlines / thresholds
| Item | Rule |
|---|---|
| RBI disposal of applications | RBI is required to dispose of applications within 180 days |
| Payment of compounding amount | Must be paid within 15 days of the order |
Documents you'll need
- All RBI filings and acknowledgements to date; FIRCs and KYCs; board resolutions and allotment records; audited accounts; a chronology of the transaction; AD-bank correspondence
Download the document checklist (PDF)
Questions we are asked most
Who needs FEMA compounding?
Companies that discover missed or late RBI filings, usually during a fund-raise due diligence, an audit, or on receipt of an RBI/AD-bank notice. Companies with structural breaches — shares issued before the money arrived, pricing below the FEMA floor, downstream investment not reported.
What documents do you need for FEMA compounding?
All RBI filings and acknowledgements to date; FIRCs and KYCs; board resolutions and allotment records; audited accounts; a chronology of the transaction; AD-bank correspondence.
What do you deliver for FEMA compounding?
Contravention analysis memo; filed application; RBI compounding order and closure.
Last updated: September 21, 2026.