Inquisitive Mind

Reserve Bank of India (RBI) has issued directions on access criteria for NDS-OM. What is NDS-OM? Negotiated Dealing System-Order Matching (NDS-OM) is the Electronic Trading Platform (ETP) authorised by RBI for transactions in Government securities. It is an anonymous screen-based order matching module, where the participants can trade anonymously by placing their orders on the system or accepting the orders already placed by other participants.  It is operated by Clearing Corporation of India Limited (CCIL) on behalf of RBI.  Who can access NDS-OM? Any person / entity eligible to invest in Government securities shall be eligible to access NDS-OM either through direct access or through indirect access. Direct Access – means access to NDS-OM wherein an entity that is party to a transaction directly executes / reports the transaction on / to the platform and such transactions are settled in its own Subsidiary General Ledger (SGL) account. Indirect Access – means access to N...

Reserve Bank of India (RBI) has issued directions on compounding of contraventions under FEMA, 1999. What is contravention and compounding of contravention under FEMA, 1999? Contravention is a breach of the provisions of the Foreign Exchange Management Act (FEMA), 1999 and rules, regulations, etc. issued thereunder. Compounding refers to the process of voluntarily admitting the contravention, pleading guilty and seeking redressal.  What is be the penalty for contravention under FEMA, 1999? In terms of Section 13(1) of the FEMA, 1999, if any person contravenes any provision of FEMA, 1999, or any rule, regulation, notification, direction or order issued in exercise of the powers under this Act, or contravenes any condition subject to which an authorization is issued by RBI, he shall, upon adjudication, be liable to – Penalty up to thrice the sum involved in such contravention where the amount is quantifiable, or  Penalty up to ₹2 lakhs where the amount is not directly quantifiab...