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CS Executive · Setting Up of Business, Industrial and Labour Laws · Setting up of Business outside India and Issues Relating thereto

Under Section 6(6) of FEMA, the Reserve Bank may by regulation prohibit, restrict or regulate which of the following?

The Reserve Bank may, by regulation, prohibit, restrict or regulate the establishment in India of a branch, office or other place of business by a person resident outside India for carrying on activity relating to it, as provided in Section 6(6) of FEMA.

  1. AEstablishment in India of a branch, office or other place of business by a person resident outside IndiaCorrect
  2. BEstablishment abroad of a subsidiary by an Indian company
  3. CRegistration of trade marks by Indian residents
  4. DAppointment of directors of Indian companies

Explanation

Section 6(6) gives the Reserve Bank power to prohibit, restrict or regulate the establishment in India of a branch, office or other place of business by a person resident outside India. It does not deal with Indian firms setting up subsidiaries abroad, trade marks or director appointments.

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