Statutory Meaning & Definition
A practice where funds are sent abroad by an Indian entity and brought back into India as FDI or foreign investment, creating an artificial impression of foreign investment. Prohibited under FEMA and scrutinised by RBI and ED.
Frequently Asked Questions (FAQs)
What is Round Tripping in Indian corporate law?
A practice where funds are sent abroad by an Indian entity and brought back into India as FDI or foreign investment, creating an artificial impression of foreign investment. Prohibited under FEMA and scrutinised by RBI and ED.
Why is Round Tripping important for compliance?
Round Tripping is governed by the Foreign Exchange Management Act, 1999 and regulated by RBI. Understanding this concept is essential for ensuring regulatory compliance, avoiding penalties, and making informed corporate decisions in India.
Who should know about Round Tripping?
Round Tripping is relevant for company secretaries, compliance officers, chartered accountants, corporate lawyers, board members, and all professionals dealing with FEMA regulatory matters in India.
Contextual Analysis & Regulatory Circulars
Recent analysis and regulatory updates related to FEMA:
RBI FEMA Second Amendment Regulations 2026: EDF Deemed Submitted for Service Exporters from 1 October 2026
Published: 3 November 2026
RBI Forex Derivative Curbs: USD 5 Million Limit, 20% FERR and Rebooking Ban (October 2026)
Published: 10 October 2026
RBI Amends FEMA 23(R) Export-Import Regulations: Shorter Timelines and New Authorised Dealer Powers
Published: 25 September 2026
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