Under the FEMA, any foreign company wishing to do any “commercial, industrial or trading activity” in India must obtain the prior approval of the Foreign Investment Promotion Board (FIPB)/Secretariat of Industrial Assistance (SIA)/Reserve Bank of India (RBI), unless otherwise expressly permitted under the automatic route. Further, all transactions involving foreign exchange and payments between residents and non-residents require the general or specific permission of RBI, unless otherwise expressly permitted. In the event that permission is not sought, RBI has the right to prohibit, restrict or regulate establishment of a branch office or place of business in India. FEMA regulates the inflow and outflow of foreign currency on capital account and current account transactions.