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FEMA

Round Tripping

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.

Last updated: 17 May 2026

Frequently Asked Questions

What is Round Tripping?

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.

What is the significance of Round Tripping under FEMA?

Round Tripping is significant under FEMA because 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.

Who does Round Tripping apply to?

Round Tripping under FEMA applies to companies, professionals, and individuals involved in FEMA-related compliance and regulatory matters in India. Specifically: 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...

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