Search+Intelligent InvestingIf you conduct forex transactions with unauthorised persons or on electronic trading platforms, you could face penal actions under FEMA, 1999.SynopsisWhenever an Indian company imports goods, borrows in foreign currency, earns overseas revenue, or runs a foreign subsidiary, forex accounting enters the picture. But this is not just a currency note buried in the accounts. The rules decide whether exchange gains and losses hit profit and loss, sit in equity reserves, or make the numbers look cleaner than the business reality. This story explains why investors should not ignore the forex line, how judgement can change reported profit and net worth, and what they must check before trusting the headline numbers.The Indian rupee has recently been in the news for losing weight against the US dollar at such speed that the RBI was forced to take steps to arrest its fall. Now, if you think only the RBI worked overtime to set things right, then you are missing one crucial element.There are many companies that would have been trying to figure out how they could manage their books so that they don't show any negative impact caused by the weakness of the ETMarkets.com 31 mins read, Last Updated: Jun 25, 2026, 06:39:00 PM ISTGift this Story to your friendsFONT SIZEAbcSmallAbcMediumAbcLargeSAVEPRINTCOMMENTContinue reading with one of these options:Limited AccessFreeLogin to get access to some exclusive stories & personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions & in-depth stock reportsSubscribe NowETUh-oh! This is an exclusive story available for selected readers only.Worry not. You’re just a step away.What’s Included withETPrime Membership