FEMA
Top tech and startup stories this week
Welcome to a new edition of ETtech Unwrapped – our weekend newsletter packed with the most important stories this week. Let’s take a look.
Trump under fire for 'dancing on table' at golf retreat as wildfires rip through South Carolina. Watch video
Even as wildfires rip through South Carolina, Donald Trump was seen golfing and dancing on table at golf retreat at Mar-a-Lago in Florida. The video has sparked outrage with netizens slamming the US President for the act. Donald Trump has not commented on South Carolina wildfire. A state of emergency was declared in South Carolina following a series of wildfires.
Paytm enables automatic payment deduction from bank accounts for equity trading
In an exchange filing, the company said Paytm UPI now supports UPI Trading Blocks, a feature that aims to simplify the trading process. Users can now set up automatic payment deductions directly from their bank accounts.
Study abroad turns into stash cash abroad; RBI takes note
The RBI is scrutinizing the misuse of a 2003 rule allowing Indian students abroad to be treated as NRIs, which enables large overseas fund transfers. This rule, meant to aid students working abroad, is now exploited by wealthy families. The RBI may review the rule to differentiate genuine long-term students from those misusing it for financial benefits.
Stocks in news: Paytm, RBL Bank, REC, ASK Automotive, Intellect Design
RBL Bank announced key leadership appointments as part of its transformation journey. Narendra Agrawal has been appointed as president and head of branch banking and retail liabilities business.
Layoffs at Ola Electric; ED notice hits Paytm stock
Ola Electric has implemented significant job cuts amidst ongoing challenges. This and more in today’s ETtech Top 5.
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Paytm shares tumble 4% after ED issues show cause notice over alleged FEMA violations
According to Paytm, the ED has identified non-compliance amounting to Rs 245 crore in OCL, Rs 345 crore in Little Internet, and Rs 20.9 crore in Nearbuy India. The alleged violations are linked to specific investment transactions in these companies.
Thinking of buying a property in Dubai? Consider FEMA limits, hidden costs, developers and zone-type before taking a call
Many upper-middle-class Indians are keen on investing in Dubai real estate due to high rental yields, no tax payment requirement, and appealing property prices. However, be sure to conduct your due diligence on the developer and funding methods before buying a property in Dubai so that you remain in full compliance with LRS/FEMA. Also, make sure your property is located in designated freehold zones.
Paytm gets show cause notice from ED over alleged Fema violations
The non-compliance identified by the ED amounts to approximately Rs 245 crore in OCL, Rs 345 crore in Little Internet, and Rs 20.9 crore in Nearbuy India, as stated by the company in its filings.
Will ED crackdown stem the great Indian Dubai rush?
Dubai's housing market has seen substantial growth, driven notably by Indian investors, including those from smaller cities. However, increased scrutiny by India's Enforcement Directorate (ED) may slow this trend. The appeal includes high property values in India and Dubai's tax benefits, but regulatory concerns persist.
ED raids in Rs 600 crore crypto conversion case
The Enforcement Directorate has frozen over Rs 2 crore in bank deposits after conducting multi-state searches on an individual accused of converting approximately Rs 600 crore worth of cryptocurrency through various Indian exchanges. The accused, Chirag Tomar, had previously been sentenced in the US for a cryptocurrency scam.
Who will audit unlisted assets overseas? Indians are in a fix
Some banks are comfortable with local auditors doing the job. But some differ on the grounds that it is not possible for an auditor sitting in India to do a proper job of auditing a firm based in another jurisdiction. One of the largest private sector banks have changed the rule-first laying down that reports of Indian auditors will not be acceptable, then subsequently insisting that the Indian auditor may finalise the APR provided it follows the host country norms.
A fresh perspective on India’s securities market laws
India’s regulatory framework, rooted in post-independence laws, has evolved through amendments. With markets expanding 100-fold since SEBI’s inception, a regulatory clean-up is essential. The 2025 Budget and Economic Survey emphasize deregulation, trust-based governance, and easing business constraints to boost investment efficiency. A streamlined securities law framework is crucial for India’s economic growth.
New York Mayor Eric Adams, a Democrat, sues Trump administration for return of $80 million it seized
New York City sued the Trump administration after $80.5 million in federal funds meant for migrant shelters was abruptly rescinded. The lawsuit claims the withdrawal was executed unlawfully without notice, raising concerns over improper use of payment systems for political purposes.
ED levies Rs 3.44-cr penalty on BBC India for alleged FEMA violations
In a show cause notice issued on August 4, 2023, asking why action should not be taken for the FEMA violation, the ED had said BBC India was 100% foreign owned though the government in a notification on September 18, 2019 had stipulated a 26% cap on overseas investment in digital media companies.
ED slaps Rs 3.44 cr penalty on BBC WS India; fines 3 directors
The Enforcement Directorate imposed over Rs 3.44 crore in penalties on BBC World Service India for violating FDI regulations. Additionally, three directors were fined Rs 1.14 crore each. BBC WS India maintained 100% FDI despite a government-mandated 26% cap for digital media.
RBI moves to fine companies for availing foreign guarantee
RBI has told at least two state-owned banks to penalize corporate clients for breaching foreign exchange laws by obtaining guarantees from overseas banks. While such guarantees are barred under FEMA, RBI's 2019 master direction allows them. The discrepancies between these regulations have led to confusion and potential legal conflicts, prompting RBI to demand regularization.
With Elon Musk in his corner, Donald Trump’s influence expands—But what if the tables turn?
President Donald Trump has signed an executive order giving Elon Musk unprecedented influence over the federal workforce through the Department of Government Efficiency Service (DOGE). The move has ignited legal battles, with critics warning of constitutional overreach and conflicts of interest. Musk, a key federal contractor, has defended his role despite allegations of spreading misinformation.
'I was not that worried...': Mark Zuckerberg says he was almost sentenced to death in Pakistan
Meta's CEO, Mark Zuckerberg, revealed he faced potential death while in Pakistan due to a lawsuit over alleged blasphemy linked to Facebook. The lawsuit accused Facebook of hosting content that violates Pakistan's strict blasphemy laws, Meta CEO Mark Zuckerberg said. He also highlighted the increasing pressure on tech companies from stricter content regulation.
Meghan Markle told 'whole of Britain was laughing' after Trump brutally mocked her, called her 'terrible'
US President Donald Trump ruled out Prince Harry's deportation and said he wouldn't pursue visa case against him. Trump said Harry got enough problems with his wife Meghan, calling her 'terrible'. A UK broadcaster didn't have much sympathy for Meghan Markle and said 'whole Britain was laughing' after Trump brutally mocked her.
Trump fires FEMA chief officer Mary Comans for funding migrant luxury hotels in NYC. All details
The US Federal Emergency Management Agency (FEMA) has terminated its chief financial officer and three other employees for making 'egregious payments' for migrant hotels in New York City. A DHS spokesperson labeled them as 'deep state activists.' President Trump announced a review of FEMA, accusing it of mismanaging funds and failing to provide adequate disaster relief in North Carolina.
Musk cuts based more on political ideology than real cost savings so far
Elon Musk and President Donald Trump's cost-cutting initiative targets government agencies disliked by conservatives, focusing on ideological differences rather than major budget contributors. Agencies such as NOAA, the Department of Education, and USAID face scrutiny for their perceived liberal agendas. Despite a claimed $37.69 billion saving, significant spending programs like Social Security and Medicare remain largely untouched.
4 FEMA employees are fired over payments to reimburse New York City for hotel costs for migrants
Four federal employees were fired for unauthorized payments to reimburse New York City for migrants' hotel costs. The payments, intended for disaster relief, were allegedly misused for luxury hotels. President Donald Trump's aide Elon Musk highlighted the issue on X. The workers involved were from FEMA, which has now suspended the payments.
$1 investment turned $328.6 million for NRI investor, SEBI steps in
SEBI barred LS Industries and related entities from trading due to alleged stock price manipulation. Dubai-based investor JPP profited significantly from selling shares, raising concerns about FEMA violations and market manipulation. SEBI is investigating LS Industries' dubious valuation increase and potential regulatory breaches.
Sebi bans 'pied piper' company with zero revenue, Rs 5,500 crore valuation
SEBI has banned LS Industries (LSIL) from accessing the capital market due to stock price manipulation and zero revenue, despite a Rs 5,500 crore market valuation. The regulator froze the bank accounts of investor JPP, who made unlawful gains. SEBI is investigating suspicious trading, insider activity, and potential FEMA violations.
Elon Musk defends DOGE, quotes Milton Friedman amidst rising scrutiny on the cost-cutting initiative
Elon Musk defends the Department of Government Efficiency (DOGE) amidst criticism, stressing the importance of monitoring government spending. Despite promises of transparency, Musk's methods have been secretive, leading to concerns about oversight and accountability. DOGE staff bypass usual communication channels, causing unease among federal employees. Critics worry about Musk's unprecedented power and lack of transparency.
ED searches Eros International in Rs 2,000-cr FEMA case
The Enforcement Directorate recently conducted searches against Eros International Media Ltd and related entities for a Rs 2,000-crore foreign exchange law violation. The probe revealed fund diversion and inflated financial statements by EROS through content advances and fictitious movie rights purchases. Incriminating documents and digital devices were seized.
Bid to attract foreign investors: FEMA rules to be eased further, says DEA Secretary
The finance ministry and RBI are collaborating to simplify foreign exchange rules, particularly for non-debt instruments, to attract more foreign investments. This initiative aims to modernise the Foreign Exchange Management Act regulations within three to four months, updating norms that have been in place for around 25 years.
NRIs selling property in India face a maze of income tax, TDS rules: Simplification urged in Budget 2025
Non-resident property transactions in India face compliance challenges, including obtaining TAN, depositing TDS, and filing e-TDS returns. It is hoped that Budget 2025 simplifies these processes and enables overseas bank payments to ease the compliance burden for buyers and sellers, fostering smoother cross-border property deals.
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