April 2024 FEMA & RBI Regulatory Updates: Key Changes You Need to Know
India’s regulatory landscape continues to evolve with significant developments under the Foreign Exchange Management Act (FEMA) and the Reserve Bank of India (RBI). The April 2024 regulatory update, released by CNK & Associates LLP, highlights several key policy changes that are crucial for companies operating in the financial, banking, and cross-border investment sectors.
Key highlights from the update include:
- Direct listing of Indian companies on international stock exchanges under amended FEMA (NDI) rules.
- Introduction of new financial services under IFSC (GIFT City), such as bookkeeping, accounting, taxation, and financial crime compliance.
- A revised RBI circular on risk management and foreign exchange derivatives, streamlining definitions and reporting obligations.
- Guidelines for statutory auditors of state and central co-operative banks with stricter eligibility and independence requirements.
- Updates on fixed remuneration caps for non-executive directors (NEDs) in private banks.
- Draft disclosure norms on climate-related financial risks applicable to scheduled banks, NBFCs, and financial institutions.
These updates reflect the government’s and RBI’s ongoing push toward transparency, global capital integration, and improved corporate governance. Businesses, auditors, and investors must stay informed and compliant with the new norms to avoid regulatory pitfalls.
