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Dec 31, 2020

RBI Issues Circular to Delegate Powers of Compounding Certain Contraventions to its Regional /Sub-Offices

The RBI through its Circular dated November 17, 2020 has delegated the powers to compound certain contraventions relating to the ‘transfer or issue of securities by a person resident outside India’ to the regional offices/ sub-offices of RBI. Further, the RBI has notified that classification of certain contraventions as ‘technical’ (i.e. dealt with by way of an administrative/ cautionary advice) will be discontinued and such contraventions will be regularized by imposing minimal compounding amount as per the compounding matrix contained in the Master Direction on Compounding of Contraventions dated January 01, 2016.

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These are the views and opinions of the author(s) and do not necessarily reflect the views of the Firm. This article is intended for general information only and does not constitute legal or other advice and you acknowledge that there is no relationship (implied, legal or fiduciary) between you and the author/AZB. AZB does not claim that the article's content or information is accurate, correct or complete, and disclaims all liability for any loss or damage caused through error or omission.

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