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CS Executive · Economic, Commercial and Intellectual Property Laws · Foreign Direct Investments - Regulations and Policy

Under FEMA, the Reserve Bank wants to verify the correctness of a statement furnished by an authorised person about its foreign investment related remittances. Which step is available to the Reserve Bank?

The Reserve Bank may at any time cause an inspection of the authorised person's business through an officer specially authorised in writing, where necessary or expedient, including to verify the correctness of statements furnished. No court order or annual restriction is required under Section 12(1).

  1. ACause an inspection of the authorised person's business by a specially authorised officer, in writing, at any time it appears necessary or expedientCorrect
  2. BInspect only after obtaining a court order
  3. CInspect only once every financial year
  4. DInspect only the persons who are not authorised persons

Explanation

Section 12(1) lets the Reserve Bank at any time cause an inspection by an officer specially authorised in writing, including to verify the correctness of information furnished. No court order or annual limit is required, and the power covers authorised persons.

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