Business leaders of Ludhiana listen to seminar on `regulatory guidelines for exports & FEMA compliance’

Ludhiana, July 12, 2019: Yes Bank vice president (Business Banking and Finance) Mandeep Singh has said that business or trade finance offers a way for businesses to release working capital, specifically from overseas transactions, that might otherwise remain tied up for long periods of time. He said it is concerned with both domestic and international trade transactions. Mandeep Singh was addressing a seminar on the topic “Regulatory guidelines on exports finance, interest equalization and FEMA compliance” here. The event was organised by FIEO Punjab Chapter in association with Yes Bank. The objective of the session was to sensitise exporters on various guidelines to be taken care and consider while doing exports and recent amendments/notifications issued by RBI under the Foreign Exchange Management Act (FEMA). The session got an overwhelming response that is evident from the fact that it well attended by more than 60 delegates representing prominent business houses from the region. Adding, Mandeep Singh said various intermediaries such as banks and financial institutions can facilitate these transactions by financing the trade. This type of trade finance is very specific, tailored to suit the financial demands of companies, which exports and help them in growing businesses globally. Further, he said the Interest subvention subsidy or rebate in rate of interest (ROI) is also very important for the growth of MSMEs across the country. He added in the Union Budget for the financial year 2019-20, as a part of access to credit for MSMEs, 2% interest subvention for all GST registered MSMEs are offered, on fresh or incremental loans. Speaking on the occasion, Sarvjit Singh, Proprietor, Man International said the objective for organising such a session is to sensitise exporting fraternity about the various important regulations involved in export and import process and its understanding in a right manner for the whole business process is very important. Being a representative of FIEO Punjab Chapter, he added Trade Finance is another key area especially for export fraternity. International trade involves a time lag during which funds are tied up while the merchandise or products are in transit. This crucial phase has all the risk, financing, exchange rates etc. inbuilt. It is pertinent for exporter members, especially the small scaled ones, to understand the process of Trade Finance well to mitigate the risk and save cost as well. Another speaker, Chartered Accountant (CA) Nipan Bansal made a presentations on “How to tackle notices being issued recently by Directorate of Enforcement (ED) and Reserve Bank of India (RBI) to exporters’. He spoke on detail about how such notices should be responded. He also briefed the gathering about export date processing management system (EDPMS). Further, Bansal shared few major contraventions being done by exporters and importers related to: Overdue Export Receivables, Non Marking off of Export Bills by AD Banks in time, Old Write off & Set off Cases Pending with AD Banks, Advance against Exports cases where Export Shipments are not made in time, Non fruition of imports but import advances having been made, Third Party Export Payments, Providing post shipment discounts to foreign buyers, Forex received for provision of services and not clarified with AD Bank , EDPMS & IDPMS Related Entries, Non Filing /Furnishing of FC-GPR, FC-TRS, FLA Returns, Annual Performance Reports (APR).