Foreign Exchange, or Forex, refers to the conversion of a nation’s currency unit into another. The trading of currencies happens on global over-the-counter exchanges. This is an exceptionally large market. But it is not so just because of the trading interest of investors. This is because businesses are a large part of this market. They do not participate with the sole interest of profiting out of the demand and supply dynamics of currency pairs; that is the intention of financial businesses. Non-financial businesses indulge in the market in order to hedge their exposure to foreign currencies, apart from other reasons.
If you have a global business, or just overseas buyers or suppliers, chances are that you are dealing in forex. This also means that as an Indian entity, you need to be compliant with the Foreign Exchange Management Act (FEMA), 1999. This is an additional challenge for your business. You need experts on the functional and regulatory aspects of forex in order to manage your exposure to overseas currencies. Even if you already have an in-house compliance team, they need to have the capability to manage the forex aspect. If not, you may have to turn to forex advisors for the same.
Boston Financial Advisory Group (BFAG) is such an advisor who can help you with the compliance aspect of forex. These are the dome of the areas which are their core strengths as an advisory firm:
Foreign Direct Investment – If you are looking for a foreign firm to invest in your business, you need to be aware of the intricacies surrounding FDI. BFAG can help you determine if your business can get this investment under the automatic route or does it need permission from relevant authorities before it can do so. Even if your business qualifies for automatic investment, there are compliance and reporting requirements that you need to adhere to where the firm can offer its services.
Overseas Direct Investment – This is the reverse of FDI. This entails investing in a foreign company or purchasing its shares via the automatic route or by taking approvals from regulatory authorities. This needs support in the form of figuring out the suitable way to invest in a foreign entity and involves extensive reporting. This happens to be a staple for the experienced team at BFAG.
External Commercial Borrowing – ECBs function as a source of finance for Indian companies which includes loans from commercial banks, buyers’ and suppliers’ credit, floating-rate notes, among other instruments. If your business needs to get finance via this route, BFAG can help you get over the compliance and reporting hurdles associated with it.
So, get in touch with us to avail our services.
Contact us in case of any assistance or queries.
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Visit our website: www.bostonfagroup.com