Assured Returns Under FEMA: An Analysis
- IJLLR Journal
- Jul 21, 2023
- 1 min read
Vedant Lathi, ILS Law College
ABSTRACT
This research paper provides a comprehensive analysis of assured returns under the Foreign Exchange Management Act (FEMA) in India. It examines the legal framework and regulatory provisions governing assured returns, focusing on the prohibition of assured exit prices for foreign investors. The study explores the permissibility of put option clauses and their classification as assured returns or damages clauses.
Furthermore, it analyzes court judgments and regulatory guidelines to understand the enforcement of these clauses. The paper also discusses the implications of assured returns on foreign investments, the Indian economy, and investor confidence. By highlighting the challenges and risks associated with assured returns, the research emphasizes the importance of investor education and regulatory mechanisms to safeguard investor interests and maintain financial stability. Overall, this study contributes valuable insights for investors, policymakers, and regulatory authorities dealing with assured returns under FEMA in India.
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