India’s exchange control and foreign direct investment (FDI) regulatory framework continues to evolve rapidly, shaped by global trade dynamics, domestic policy shifts, and increased regulatory scrutiny. This makes it critical for businesses, both foreign and domestic, to stay agile, compliant, and forward-looking in their investment and capital structuring strategies. KNM & Partners offers comprehensive legal services across the spectrum of India’s exchange control regime, helping clients navigate the complexities of FEMA, FDI policy, and other allied regulations seamlessly.
The Firm regularly advises global corporations, foreign institutional investors, venture capital and private equity funds, Indian conglomerates, and financial institutions on structuring inbound and outbound investments. The Firm provides tailored legal solutions that integrate corporate structuring, banking and finance, tax advisory, and regulatory compliance, ensuring that transactions are both legally sound and commercially efficient. Whether advising on sector-specific FDI caps, pricing guidelines, reporting obligations, or repatriation strategies, The Firm’s multidisciplinary approach ensures that every legal and financial aspect of the transaction is addressed holistically.
With experience in complex cross-border transactions, including debt and equity funding, external commercial borrowings (ECBs), hybrid instruments, and foreign currency lending, the Firm’s lawyers work closely with clients through the entire investment lifecycle. The Firm assists in transaction structuring, legal documentation, regulatory filings, approvals, and post-investment compliances, ensuring alignment with both Indian and international legal frameworks. The Firm’s regulatory practice extends to representing clients before the Reserve Bank of India (RBI), the Department for Promotion of Industry and Internal Trade (DPIIT), authorised dealer (AD) banks, and other regulatory authorities, including in compounding and enforcement actions.
The Firm’s services also cover cross-border exits, tax-efficient repatriation of funds, ODI (Overseas Direct Investment), and regulatory approvals in sensitive or restricted sectors. With increasing focus on compliance and penalties for non-compliance, the Firm regularly conducts FEMA compliance audits, internal policy reviews, and SOP drafting for exchange control and FDI management, helping clients proactively manage legal risks and mitigate exposure.
By blending the Firm’s strengths in corporate advisory, banking & finance, taxation, and regulatory representation, the Firm ensures that clients receive cohesive and commercially practical solutions for their global investment strategies, with the agility to respond to India’s dynamic regulatory landscape.
Related Practice Areas
Competencies
Assisting foreign investors and Indian entities in evaluating sector-specific entry routes, structuring joint ventures, wholly owned subsidiaries, and hybrid investment models while ensuring alignment with FDI policy, FEMA, Companies Act, and tax laws. The Firm’s services also include advising on beneficial ownership, control rights, and exit strategies.
Supporting clients in end-to-end compliance with FEMA regulations, including capital account and current account transactions. The Firm manages transactional filings like FC-GPR, FC-TRS, LLP(I), and downstream investment reports, while liaising closely with authorised dealer banks (AD Banks) to streamline the process.
Advising both lenders and borrowers on External Commercial Borrowings (ECBs), foreign currency loans, rupee-denominated bonds, and other financing structures, ensuring compliance with RBI’s Master Directions and FEMA debt regulations, and drafting loan agreements, security documents, and compliance certificates.
Providing advisory on the repatriation of dividends, interest, royalties, and capital gains, with tax-efficient structuring of exits for foreign investors, ensuring harmonization of FEMA with direct and indirect tax laws and double taxation treaties.
Representing clients in seeking approvals from the RBI and other authorities for investments in prohibited or restricted sectors, pricing deviations, delayed filings, and handling compounding applications, including appearances before Enforcement Directorate (ED) and RBI compounding cells.
Conducting exchange control compliance audits for corporates, multinationals, and financial institutions, including drafting internal SOPs, compliance manuals, and establishing internal control mechanisms to monitor transactions and ensure ongoing regulatory adherence.
Drafting and reviewing transaction documents such as Shareholder Agreements, Subscription Agreements, Loan and Security Agreements, Escrow Arrangements, Indemnity Frameworks, and Escalation Clauses, ensuring regulatory compliance under FEMA, SEBI, and other applicable laws.
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