What is WTO?

The WTO or World Trade Organization is the only international organization that deals with the global
rules of trade between nations. It ensures that trade flows smoothly, predictably and as freely as
possible since its establishment on 1 January 1995. The WTO is a successor global trade organization to
the GATT which came into being on 1 January 1948 as a result of an agreement among 23 proponent
countries to have a multilateral trade regulating organization in place of an International Trading
Organization (ITO). Thus, this organization provides a global platform for countries to trade in goods and
services.

Emergence of WTO
The WTO came into being on 1 January 1995. There were 148 member nations who participated in the
Uruguay Round (UR), resulting in the General Agreement on Tariffs and Trade (GATT) being transformed
into an international organization that oversees the work of the rules-based multilateral trading system.
As we have seen, the WTO is the result of a series of trade agreements negotiated during the Uruguay
Round (1986–94), the eighth and final trade round conducted under the GATT
Initial membership 148 member nations
Current membership (by 2023) 164 member nations
164th member country Afghanistan

Objectives of World Trade Organization

The world trade organization is established with the following objectives. These are enlisted below:
(i) Expansion of Production and Trade in Goods and Services
Its relations in trade and economics shall be conducted in a manner that it raises standards of living,
ensure full employment to the people and a large and steadily growing volume of real income and
effective demand, and expand the production and trade in goods and services.
(ii) Optimal Use of World’s Resources
It shall bring about the optimal use of the world’s resources within the framework of sustainable
development, seeking both (a) to protect and preserve the environment, and (b) to improve the means
for doing so in a manner consistent with the respective needs and concerns of member nations which
are at different levels of economic development.
(iii) Concerted Efforts for Developing Countries
It shall make concerted efforts to ensure that developing countries, primarily the least developed
amongst them, secure a steady share in the growth in international trade consistent with the
requirements of their economic prosperity.
(iv) Formulation and Implementation of Mutually Beneficial Agreements
The World Trade Organization focuses on negotiating reciprocal and mutually advantageous agreements
so as to bring about a sub-substantial reduction of tariffs and other barriers to trade and the eradication
of discriminatory treatment in international trade relations.
(v) Establishing a Multilateral Trading System
It shall move towards an integrated, viable and durable multilateral trading system covering the GATT,
the benefits accruing from past liberalization efforts and all the results of the Uruguay Round of
multilateral trade negotiations (MTNs)
(vi) Linking Policies and Practices
It shall bring about the linkage between policies and practices relating to trade, environment and
sustainable development.

Principles of World Trade Organization

The five core principles of the World Trade Organization are explained below.
(i) Principle of Trade without Discrimination
This principle implies that the WTO follows the most-favoured-nation (MFN) status and national
treatment. The MFN implies, in simple terms, that a trade concession granted to one member country of
the WTO is automatically extended to all other members. National treatment implies that equal
treatment is extended to imported goods in a member’s market as is granted to its domestically
produced goods
ii) Free Trade through Progressive Liberalization of Trade Regimes
The very objective of setting up a global organization like the WTO is to ensure free trade between
countries by removing tariff and non-tariff barriers and other hindrances to the free flow of goods and
services. As per this second principle, WTO would ensure freer trade through progressive liberalization
of trade regimes.
(iii) Predictability of Trade Rules
The predictability of trade rules is a sine qua non for the free and smooth flow of goods and services
between countries. In this context, predictability would imply that the WTO ensures that governments
of member countries do not raise arbitrarily existing tariffs or non-tariff barriers.
(iv) Fair Competition
This principle emphasizes fair competition in international trade that ensures a level-playing field
between trading partners. Fair competition will minimize market distortions caused by export subsidies,
dumping and similar disruptive trade practices
(v) Economic Development through Trade
Developing countries attempt to enact trade policies to suit their requirements of increasing the levels
of income and standard of living. The fifth principle of the WTO endeavours to promote the economic
growth of poor and developing countries through trade assistance and enhanced market access by
enabling them to enter into preferential trade arrangements.

Functions of World Trade Organization

The WTO’s major function is to supervise and implement trade regulations in the worldwide economy.
The organization administers the multifaceted trade agreements scheduled in the WTO agreement. The
primary functions of the WTO are as follows
(i) It helps in the implementation, administration and realization of the objectives for which it was
established.
(ii) It provides the framework for the implementation, administration and operation of the trade
agreements related to trade in civil aircraft, government procurement, trade in dairy products and
bovine meat.
(iii) It figures out the meeting place for negotiations amongst its members relating to their multinational
trade relations in matters related to the agreements and framework for the implementation of the
results of such negotiations, as determined by the Ministerial Conference.
(iv) It puts into practice the understanding of rules and procedures concerning the Settlement of
Disputes of the Agreement.
(v) It seeks to cooperate with the IMF and the World Bank and its affiliates with a view to realizing
greater coherence in global economic policy-making
What is a Corporate Entity?
A corporate entity is a legal entity representing an association of people, whether natural, legal or a
mixture of both, with a specific objective. It is a never-ending entity having existence in the eyes of laws.

What is Corporate Accounting?

Corporate accounting is the process of recording, classifying, summarising and interpretation of business
transactions. Every corporate entity performs accounting functions to determine its financial situation.
The whole concept of performing accounting functions by a corporate entity is called corporate
accounting. This is also known as business accounting or company accounting.

Corporate accounting is the analysis of cash statements, balance sheets, financial statements, etc. as
well as the analysis of various processes such as planning. It is also a functional tool for business analysis
such as integration, integration and data collection.
Each relevant organisation performs accounting functions to determine its financial situation. The
accounting practices performed by these organisations are called corporate accounting practices.
Corporate accounting is considered a specialised branch of accounting that deals with financial
transactions. Business operations often include financial planning and cash flow statements. It also deals
with the analysis and interpretation of the company’s financial statements.

Importance of Corporate Accounting

Corporate accounting is one of the most important functions of any organisation. Companies do
accounting to analyse their financial situation and predict future business decisions. This position is
important for:
1- Communicating the status of the company’s assets and liabilities to stakeholders
2- Ensuring that financial transactions comply with the rules and regulations of the government
3- Preparing reports for management to make decisions about the company.
4- Complying with organisational rules and policies

Some terms related to corporate accounting

Equity Shares: Equity shares serve as long-term financing options for companies. These shares are
issued publicly and are non-redeemable. Shareholders of equity shares possess voting rights,
entitlement to profit sharing, and the ability to claim the company’s assets.
Sweat Equity Shares: Organisations often reward employees or directors for outstanding performance
by granting sweat equity shares. The term “sweat equity” pertains to an individual’s non-monetary
contributions to an organisation.
Subscribed Capital: Subscribed capital refers to a portion of the issued capital that the public has
committed to purchasing. It doesn’t necessarily mean that all issued shares will be taken up by the
public.
Paid-Up Capital: Paid-up capital is the actual amount contributed by shareholders.
Reserve Capital: According to Section 99 of the Companies Act, 1956, reserve capital is uncalled capital
that can only be utilised during company winding-up.
Preference Shares: Under Section 42 of the Companies Act, 2013, preference shares encompass the
share capital portion granting holders priority in dividend payment and share capital repayment during
company liquidation
Debenture Redemption Reserve: Also referred to as a sinking fund, this reserve accumulates at least
25% of debenture face value annually until maturity. It safeguards debenture holders’ interests.
Conversion into Shares: Designed for convertible debentures, this approach allows holders to convert
units into the company’s ordinary equity shares. Conversion discharges the total debenture liability.
Open Market Purchase: Companies can acquire debentures from the open market if the units are
traded on a regulated exchange, simplifying administrative procedures.

Advantages of Corporate Accounting

There are numerous advantages from which businesses/companies can benefit, as follows:
 Creates/Monitors Budget
Corporate accounting aids in the creation and monitoring of budgets, enabling effective resource
allocation and financial planning
 Tracks Business Expenses
Corporate accounting systematically tracks and analyses business expenses, ensuring cost control and
efficiency.
 Monitors Financial Position of the Company
Corporate accounting provides real-time insights into a company’s financial health, fostering informed
decision-making.
 Facilitates Audit
Properly maintained records simplify audits, saving time and enhancing transparency. Audited financial
statements bolster trust among investors, stakeholders, and regulators
 In Compliance of Law
Corporate accounting helps companies stick to legal and regulatory requirements, reducing legal risks.
 Assists in Business Decisions
Corporate accounting provides accuracy in financial data and helps in business decisions by providing a
clear overview of the company’s financial standing.
 Effective Management
Corporate accounting supports management with crucial financial insights for strategic planning and
growth which enhances overall efficiency of management.

Disadvantages of Corporate Accounting

Corporate accounting suffers from some drawbacks which are as follows:
- Considers Only Monetary Terms
- Corporate accounting mainly focuses on finances and neglects various non-monetary aspects
like employee satisfaction and environmental impact, leading to incomplete decision-making
- Accounting Data May Be Biased
- Corporate accounting can be biased in financial reporting which can skew data accuracy due to
personal interests or corporate pressures, leading to misrepresented financial information.
 - Manipulation of Accounts
- Creative accounting practices, like inflating revenues or hiding liabilities, can mislead
stakeholders and regulators, undermining trust in financial statements.
- Restraint of Accounting Policies
Corporate accounting strictly follows laws. Rigid adherence to standard policies may not fit every
business scenario, limiting accurate representation of a company’s unique financial situation.
- Ignores Time Value of Money
Corporate accounting neglects the time value of money which can result in underestimating the long-
term investment impact and future benefits of projects
- Redundant Paperwork
Corporate accounting includes excessive paperwork which can lead to errors, consumes resources, and
detracts from more strategic activities.
- Excessive Tax Filings
Corporate accounting involves complex accounting regulations necessitating numerous tax filings,
burdening businesses with extra time and resource expenses.

Conclusion
Corporate accounting is the most important part of any organisation. Companies use corporate
accounting to analyse their financial situation and predict future business decisions. It helps companies
to ensure that financial transactions comply with the rules and regulations of the government. It aids in
the preparation of reports for management to make decisions about the company
The Consumer Protection Act, 1986 is a legislative framework designed to safeguard the rights and
interests of consumers in various transactions. It aims to ensure fair practices, prevent unfair trade
practices, and provide an avenue for consumers to seek redressal for grievances. In this article, we will
learn about the fundamentals of consumer protection, the Consumer Protection Act, its amendments
and the responsibilities of consumers.

Consumer Protection Act 1986 Overview

The Consumer Protection Act, 1986 (COPRA) meets the essential social need to a very great extent. A
vigilant consumer owes it to himself and his family members to know and understand the relevant
provisions of this significant statute, which is a piece of socio-economic legislation. The act not only
provides consumers protection against unscrupulous practices but also makes them self-aware of their
rights
Who is a Consumer?
The term consumer refers to any person, firm, Hindu undivided family, cooperative society or
association that buys or hires (fully/partly paid for) goods or services for non-commercial purposes
except self-employment.
According to the Consumer Protection Act, 1986, “Consumer” means any person who buys or hires any
services for some consideration, paid or promised, and includes any other user of goods or services
using them with the approval of the buyer. It does not, however, include a person who obtains goods for
any commercial purpose or for resale.”

What is Consumer Protection?

Consumer protection refers to the steps necessary to be taken or measures required to be accepted to
protect consumers from business malpractices. It may be regarded as a movement like consumerism.
This is necessary primarily because businessmen aim at maximising profits and this is often done at the
expense of consumers
Consumer Protection Act, 1986
The Consumer Protection Act, 1986 empowers consumers by providing a structured mechanism to voice
grievances, seek redressal, and hold businesses accountable for any misconduct. By establishing
dedicated consumer forums and regulatory bodies, the act not only offers protection but also promotes
ethical conduct within the business landscape. It encourages fair trade practices and cultivates a culture
of informed consumer decision-making, ultimately benefiting both consumers and the economy as a
whole.

Rights of the Consumer under the Consumer Protection Act, 1986

The six rights of the consumer as enunciated under Section 6 of the COPRA are:
- The Right to Safety: The right to safety protects the consumer against the marketing of goods
and services which are hazardous to life and property.
- The Right to Be Informed: The right to be informed states about the quality, quantity, potency,
purity, standard and price of goods or services, as the case may be, so as to protect the
consumer against unfair trade practices
 - The Right to Choose: This provides the customer with the right to make choices and access to a
variety of goods and services at competitive prices.
- The Right to be Heard and to be assured: This right states that the customer’s voice and interest
should receive due consideration at appropriate forums.
- The Right to Seek Redressal: This right protects customers against unfair trade practices or
restrictive trade practices or unscrupulous exploitation of them.
- The Right to Consumer Education: This right to acquire the knowledge and skill to be an
informed consumer throughout life

Duties and Responsibilities of the Consumer

Consumer protection is not a one-way street. To enjoy protection, consumers have to exercise some
responsibilities too. M. R. Pai of the Forum of Free-enterprise, Mumbai, in his booklet, has listed a few
responsibilities that the consumers are expected to bear.
- Substantiate Complaints: When raising a complaint against a seller, ensure that the complaint is
clear and supported by relevant evidence, such as receipts or correspondence. Vague
complaints should be avoided, and your claims should be genuine.
- Seek Seller’s Viewpoint: Before taking your complaint to the appropriate authorities, consider
seeking the seller’s side of the story. Sometimes, understanding the seller’s perspective might
provide insights you hadn’t considered initially.
- Cooperate with Sellers: In situations where products or services are in short supply, be open to
cooperating with the seller’s instructions, like waiting in a queue. Use legal action as a last
resort. Additionally, supporting sellers in pressuring producers to replace defective items can be
beneficial.
- Minimise Inconvenience: While asserting your rights, it’s important to ensure that your actions
don’t cause unnecessary trouble for unrelated individuals. Actions like protests should be
conducted in a way that doesn’t negatively impact the general public
- Address Systemic Issues: When making complaints, direct your concerns towards the systemic
issues at hand rather than blaming specific individuals. Focusing on improving processes will
lead to more effective change.
- Avoid Manipulation: Guard against being manipulated for political purposes. While fighting for
your consumer rights, maintain a focus on your personal concerns without allowing yourself to
be used for political agendas.
- Informed Complaints: Before lodging a complaint, take the time to thoroughly understand the
issues. Read and comprehend the terms and conditions of your purchases. Lack of awareness
about crucial details might hinder your ability to exercise your rights.
- Grievance Redressal Knowledge: Familiarise yourself with the proper channels for addressing
grievances. For minor issues, approach dealers or certifying authorities rather than resort to civil
courts. This approach saves both time and resources.
- Thoughtful Purchases: Approach your purchases thoughtfully. Research products, explore
different options, compare quality and prices, and avoid making impulsive decisions. While
seeking advice is helpful, ultimately, make decisions independently based on your own
judgment
About International Economic Institutions
International Economic Institutes are the global level organisation responsible for controlling trade and
economic growth in the whole world. Institutes like the International Monetary Fund (IMF) and World
Bank were established with specified objectives. Although, each one of them has a different role to play.
IMF and World Bank are also called Bretton Woods twins because they have come into existence as a
result of the Bretton Woods Conference that was held in 1944 but both are having different
perspectives. World Bank is majorly responsible for providing long-term loans and IMF is providing
short-term loans in order to rectify the Balance of Payment crisis and short-term financial needs.

What is International Monetary Fund (IMF)?..

The International Monetary Fund (IMF) is an international organisation that oversees the global financial
system by following the macroeconomic policies of its member countries, especially those with an
impact on exchange rates and the balance of payments. IMF’s objectives as stated in Article I of its
Articles of Agreement are the following:
- To promote cooperation among member countries
- To increase trade among member countries and promote growth in employment and income
- To stabilise exchange rates and to avoid competitive devaluations
- To reduce restrictions on payments for trade
- To provide loans to help cover shortfalls in BoP, without hurting national or international
interests
- To reduce the impact of the balance of payments crisis.

Members’ Quota in International Monetary Fund

Most of the IMF’s financial resources are collected through subscriptions of assigned quotas. “Each
member country of the IMF is allotted a quota on the basis of the country’s respective size in the world
economy. A member country’s financial commitment determines its voting strength and has a bearing
on its access to IMF financing.”

Special Drawing Rights (SDR)

The Special Drawing Rights (SDR) is an international reserve asset, specially created to supplement its
IMF’s member countries’ official reserves. Its value is based on a basket of five key hard currencies
namely; the US dollar, euro, Chinese renminbi, Japanese Yen and pound sterling. SDRs are exchangeable
for freely usable currencies

What is World Bank?

The World Bank Group is the world’s foremost source of funding as well as a repository of knowledge for
low-income countries. The World Bank was one of two major international institutions established
during the Bretton Woods Conference in 1944. The World Bank’s mission is to aid developing countries
and their inhabitants to achieve development and reduce poverty
The United Nations Monetary and Financial Conference/Bretton Woods Agreement
Establishment Year 1944
Representative Countries (beginning) 144 member countries
Operation initiation 1946
Previous name IBRD (International Bank for Reconstruction and Development)
Current members 189.

The World Bank Group

There are five institutions in the World Bank Group (WBG) carrying out the different objectives for which
the Bank was set up originally. The World Bank differs from the World Bank Group, in that the World
Bank comprises only two institutions
- The International Bank for Reconstruction and Development (IBRD )- IBRD aims to reduce
poverty in middle-income and credit-worthy poorer countries by promoting sustainable
development through loans, guarantees, risk management products, and analytical and advisory
services. The IBRD, as the original arm of the Bank, has been responsible for the reconstruction
of post-war devastated economies
- The International Development Association (IDA)- Established in 1960, the International
Development Association (IDA) is a part of the World Bank that helps the world’s poorest
countries. Its objective is to reduce poverty by giving interest-free loans and programmes that
boost economic growth
- International Finance Corporation (IFC)- The International Finance Corporation (IFC), an affiliate
of IBRD, was established in 1956 so that greater advantage could be taken of private initiative in
the launching of new capital projects. IFC aims at promoting private sector investments by both
foreign and local investors
- The Multilateral Investment Guarantee Agency (MIGA)- Established in 1988 with a capital of USD
1 billion, the Multilateral Investment Guarantee Agency (MIGA) supports direct
foreign investment into a country by offering security against the investment in the event of
political turmoil
- The International Centre for Settlement of Investment Disputes (ICSID)- The International Centre
for Settlement of Investment Dispute (ICSID) was established in 1966 as an autonomous
international institution under the convention of the Settlement of Investment Disputes
between nations

What is UNCTAD?
During the course of the work, GATT earned the dubious distinction of serving the interests of
developed nations only and was nicknamed the “Rich Men’s Club”. The United Nations Conference on
Trade and Development (UNCTAD) is a body of the United Nations that aims to develop opportunities,
investments and trade in developing countries. The UNCTAD was established in 1964 to perform the
following functions:
- To promote international trade with a view to accelerating economic development
- To formulate principles and policies on international trade and related problems of economic
development
- To negotiate multinational trade agreements
- To make proposals for putting its principle and policies into effect
Conclusion
With the advent of international economic institutions, there comes an end to communism and the
emergence of globalisation. These Institutes play a significant role in helping countries not only by giving
them financial support but also the relative guidance and mentorship facilities. Institutes like the World
Bank by its branch called International Development Association (IDA) provide help to the developing
and under-developing nations, by providing loans at a 0% rate. On the other hand, IMF also provides
short-term financial support for meeting up balance-of-payment crises and other short-term financial
obligations. The institutes like UNCTAD focus on the development of international trade
What is Foreign Direct Investment (FDI)?
Foreign direct investment refers to an investment which is made by a company or an individual in
another country in which they are having interest. This is the major source of getting financial aid from
outside sources. It is not just the inflow of money, but also the inflow of technology, knowledge and
expertise/know-how. It is a major source of non-debt financial resources for the economic development
of a nation

FDI Routes in India

FDI can be done in India through three routes only. The following illustration explains the three routes of
FDi fully. Followed by the illustration is an explanation of the FDI Routes in India in depth
- Automatic FD Route
In this route foreign company does not require any formal government permission. This root is
permitted for certain areas only example For medical devices 100% automatic FDI can be done, Thermal
Power 100% FDI, insurance up to 49% and petroleum refining by public sector units up to 49% etc.
- Government FDI Route
Here for foreign direct investment, compulsory permission from the government is necessary to make
direct Investments. Here are some certain sectors that follow the government FDI route example
broadcast content services 49%, food product retail trading 100%, multi-brand retail trading 51%,
banking and public sector 20% and satellite 100% etc.
- Hybrid FDI Route
This route requires permission from the government if the FDI is more than a particular limit of amount.
If it’s less than the limit then no automatic route can be followed

Sectors Prohibited for FDI

There are some sectors where no FDI can be done. These are stated below:
- Agriculture sector
- Atomic energy sector
- Investment in chit funds
- Cigars and cigarettes and other tobacco industry
- Housing and real estate

Advantages of Foreign Direct Investment (FDI)-

Foreign direct Investments are very beneficial for the countries.0 Some of its advantages are given
below:
- They bring new technologies, knowledge and skills to the country.
- They help to generate enormous employment opportunities.
- They help to improve the quality and Standards of products and services produce in the
domestic market.
- They bring financial resources and ultimately and corporate sector. They can help the country to
have a more competitive results environment.

Disadvantages of Foreign Direct Investments (FDI)

 - FDIs have some disadvantages. These are as follows:
- FDI can prove disadvantageous for domestic companies and Investments.
- FDI can sometimes affect exchange rates adversely.
- Small and medium enterprises face heart competition from these multinational corporations

What is Foreign Portfolio Investments (FPI)?

Investment in the financial securities of a foreign Nation such as stocks, preference shares or debentures
listed on a foreign Stock Exchange is called Foreign Portfolio Investment. This is different from direct
investment because they are done for short a time period and maturity. These are just like normal
Investments with the difference that they are done for the security of some foreign Nation.

Advantages of Foreign Portfolio Investments (FPI)

Below are the major advantages of foreign portfolio investment.
- Instant and Quicker Returns from foreign portfolio investment than foreign direct investment
which takes a lot of time to generate a return.
- Foreign exchange rates benefits.
- Making investments in other countries that have good exchange value and stronger currency
can help the investor to generate better Returns than domestic Investments
- Foreign portfolio investment gives an opportunity to investor to invest his or her money in
diverse investment opportunities or portfolios at the international level
- FDI is beneficial for small investors. Since FPIs are done at a smaller scale than foreign direct
investment simple regulations can help investors or retail investors generate returns which are
more feasible

Disadvantages of Foreign Portfolio Investments (FPI)

- Higher fluctuations in FPIs. Foreign portfolio investments are more volatile and can be affected
adversely by economic shocks and fluctuations are very prominent.
- Economic disturbance can be seen in FPIs. Holding investment in the security of some country’s
company or many companies can enhance economic disturbance is when an issue such as a
panic sale or large sale arises. This will raise monetary description at a large scale
Foreign Exchange Regulation Act 1973
The Foreign Exchange Regulation Act (FERA) was introduced in 1973 and became effective on 1 January
1974. This law came into being during a time when India was facing a significant foreign exchange crisis,
as its reserves were less than USD 1 billion. The period marked the peak of Nehruvian socialism,
characterised by extensive government control over various sectors of the economy.

Objectives of Foreign Exchange Regulation Act (FERA) 1973

The major objectives of the Foreign Exchange Regulation Act FERA, 1973 are as given below:
- The primary goal of FERA was to ensure effective management and proper utilization of the
country’s foreign exchange reserves to contribute to economic growth.
- The act aimed to regulate various aspects such as the acquisition of foreign property, foreign
investment, employment of foreign nationals, and more.
Key Provisions of Foreign Exchange Regulation Act (FERA), 1973
Below are the major provisions as per the Foreign Exchange Regulation Act, 1973
- Conversion of Foreign Companies
- Foreign companies, except those in shipping and airlines, were required to transform into Indian
companies to gain approval under FERA.

Shareholding Restrictions
FERA imposed limitations on foreign shareholding percentages based on the type of business:
- Up to 74% foreign shareholding is allowed for companies engaged in specific sectors such as
producing certain items, export-oriented goods, state-of-the-art technology, tea production, or
limited trading activities.
- Companies that were 100% export-oriented could potentially have foreign shareholding
exceeding 74%, contingent upon individual merit.
- A foreign shareholding cap of 40% is applied to companies outside the sectors mentioned
above.
Foreign Shareholding in Airlines and Shipping:
The extent of foreign shareholding in airlines and shipping companies was determined on a reciprocal
basis.

Banking Companies’ Foreign Shareholding:

The foreign shareholding percentage for banking companies was determined by guidelines issued by the
Reserve Bank of India (RBI) and the Banking Department of the Ministry of Finance.

Restrictions Imposed by FERA, 1973

Since Foreign Exchange and Regulation Act deals with the stringent rules and laws for regulating the
exchange of foreign exchange. Below are the major restrictions imposed by FERA, 1973
Dealing in Foreign Exchange: Only authorized dealers were permitted to engage in foreign exchange
transactions; others required prior approval from the RBI.
Payments: Payments to foreign entities were subject to restrictions and required approval from the RBI.
Currency and Bullion Import/Export: Importing or exporting foreign exchange or Indian currency was
subject to RBI approval; unapproved currency had to be sold to the RBI.
Foreign Investment and Securities: Transferring or owning securities outside India requires RBI
permission.
Immovable Property: Acquisition, transfer, or ownership of property outside India or in India by non-
citizens requires approval from the RBI.
Employment of Foreign Nationals: Employing foreign nationals in India was subject to RBI permission.
Establishment of Business: Setting up business branches in India by non-citizens requires prior RBI
approval