RBI Grade BNABARD ESISEBI
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In February 2026, the Reserve Bank of India (RBI) imposed a compounding fee of ₹18.76 lakh on One 97 Communications Limited (OCL) for violations of the Foreign Exchange Management Act, 1999, relating to foreign investment transactions in its subsidiary.
What is the case about?
Transaction involved
- Foreign investment of about ₹33 crore
- Made by Little Internet Singapore Private Limited
- Into Little Internet Private Limited (LIPL)
- Period: March 2016 – June 2017
Nature of violation
- Contravention of:
- Regulation 5(1) read with Regulation 13
- FEMA Notification No. 120/RB-2004
- These provisions relate to foreign investment norms and reporting/compliance requirements.
Compounding Order Explained
- Compounding under FEMA is a voluntary settlement mechanism:
- The entity admits the contravention
- Pays a monetary penalty (compounding fee)
- The case is then disposed of without further proceedings
- It helps reduce litigation while ensuring regulatory compliance.
Disclosure & Compliance
- OCL disclosed the RBI compounding order under Regulation 30 of the
Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency to investors.
