Time: 40 Mins.

CH- 1 TO 6 COMBINE OF EC-IPL SUBJECT Marks: 35

1. MCQs [2 MARK EACH]:

I- Shine Ltd. is a Korean company having manufacturing units in 4 countries. It is having it’s
headquarter in Mumbai and Branch in Thailand. Headquarter at Mumbai controls branch of
manufacturing unit. What would be the residential status of manufacturing unit of
Thailand?
A. Thailand Branch is Foreign Unit
B. Thailand Branch is Person Resident Outside India
C. Thailand Branch is Person Resident in India
D. Thailand Branch is Ordinarily Resident
II- Limit of FDI for Power Exchanges in India under Automatic Route is?
A. 69%
B. 74%
C. 49%
D. 26%
III- Rule 11 of the FEM (OI) Rules, 2022 provides that an Indian entity engaged in financial
services activity in India may make ODI in a foreign entity which is directly or indirectly
engaged in financial services activity subject to the condition that:
A. The Indian entity has posted net profits during the preceding financial year.
B. The Indian entity has posted net profits during the preceding 5 financial years.
C. The Indian entity has posted net profits during the preceding 3 financial years.
D. The Indian entity has posted net profits during the preceding 2 financial years.
IV- Directors of Pragati Ltd. wants to raise funds through ECBs. Mr. Suresh Gupta, one of the
Director of the company wants your advice as to MAMP under ECB for the following:
a. ECB Raised from foreign Equity holder for working capital purposes, general corporate
purposes or for repayment of Rupee Loans.
b. ECB Raised for repayment of Rupee Loans availed domestically for Capital
Expenditure.
Options (a) (b)
A 5 Years 7 Years
B 3 Years 5 Years
C 7 Years 5 Years
D 3 Years 7 Years
V- Any person aggrieved by any decision or order of the designated Court may file an appeal to
the _______ Court within _____ days from the date of communication of the decision or
order of the said court?
A. Supreme Court; 60 days
B. Supreme Court; 30 days
C. High Court; 60 days
D. High Court; 30 days
 VI- OLA Ltd. manufacturing electric two wheelers in making export more than US$ 500 Million
for last 3 years. You are required to identify how OLA Ltd will be classified:
A. 2 Star Export House
B. 3 Star Export House
C. 4 Star Export House
D. 5 Star Export House
2. Explain any 5 permissible current account transactions by Individuals under Liberalised
Remittance Scheme. (5 Marks)
3. Discuss the Rules in respect of acquisition & transfer of immovable property outside India. (5 M)
OR
Explain reporting requirement for Investment in India by a person resident outside India. (5 M)
4. Under what circumstances prior permission of RBI is not required for transfer of capital
instruments under FDI. (5 Marks)
5. What are the conditions required to be fulfilled for conversion of ECB into equity? (4 Marks)
6. Write a short note on EPCG scheme under FTP. (4 Marks)
OR
Write a short note on Development Commissioner under SEZ. (4 Marks)