(1) This Act may be called the Foreign Exchange Management Act, (2) It extends to the whole of India. (3) It shall also apply to all branches, offices and. PDF document (50 kb). Foreign Exchange Management FEMA. /RB. Date: October 19, Foreign Exchange Management (Deposit) (Third Amendment) Regulations, In exercise of the powers conferred by clause (f) of. PDF document (16 kb). Foreign Exchange Management (Acquisition and transfer of immovable property in India) Regulations,
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The Foreign Exchange Management Act, (FEMA) is an Act of the Parliament of India "to . Archived from the original (PDF) on 9 September Retrieved. Waters Flood Insurance Reform Act of (BW). The Specific Rate Guidelines historically have been used by insurers to calculate. n , the U.S. Congress passed the Biggert Waters Flood Insurance Reform Act of which calls on the Federal Emergency Management.
This act makes offences related to foreign exchange civil offenses.
It extends to the whole of India. It enabled a new foreign exchange management regime consistent with the emerging framework of the World Trade Organization WTO.
It also paved the way for the introduction of the Prevention of Money Laundering Act, , which came into effect from 1 July Hence the tenor and tone of the Act was very drastic. It required imprisonment even for minor offences. Under FERA, a person was presumed guilty unless he proved himself innocent , whereas under other laws a person is presumed innocent unless he is proven guilty.
FEMA is a regulatory mechanism that enables the Reserve Bank of India to pass regulations and the Central Government to pass rules relating to foreign exchange in tune with the Foreign Trade policy of India.
The Foreign Exchange Regulation Act FERA was legislation passed in India in  that imposed strict regulations on certain kinds of payments, the dealings in foreign exchange forex and securities and the transactions which had an indirect impact on the foreign exchange and the import and export of currency.
FERA came into force with effect from January 1, FERA was introduced at a time when foreign exchange Forex reserves of the country were low, Forex being a scarce commodity.
Coca-Cola was India's leading soft drink until when it left India after a new government ordered the company to turn over its secret formula for Coca-Cola and dilute its stake in its Indian unit as required by the Foreign Exchange Regulation Act FERA. In , the company along with PepsiCo returned after the introduction of India's Liberalization policy.
This was done in order to relax the controls on foreign exchange in India.
FERA was repealed in by the government of Atal Bihari Vajpayee and replaced by the Foreign Exchange Management Act, which liberalised foreign exchange controls and restrictions on foreign investment. The downloading and selling of foreign currency and other debt instruments by businesses, individuals and governments happens in the foreign exchange market. Apart from being very competitive, this market is also the largest and most liquid market in the world as well as in India.
It constantly undergoes changes and innovations, which can either be beneficial to a country or expose them to greater risks. The management of foreign exchange market becomes necessary in order to mitigate and avoid the risks. Central banks would work towards an orderly functioning of the transactions which can also develop their foreign exchange market.
It is necessary to keep adequate amount of foreign exchange from Import Substitution to Export Promotion. The switch to FEMA shows the change on the part of the government in terms of for the capital. FCRA, has been enacted by the Parliament to consolidate the law to regulate the acceptance and utilization of foreign contribution or foreign hospitality by certain individuals or associations or companies and to prohibit acceptance and utilization of foreign contribution or foreign hospitality for any activities detrimental to national interest and for matters connected therewith or incidental thereto.
This sum has been specified as Rs.
Explanation 1 — A donation, delivery or transfer or any article, currency or foreign security referred to in this clause by any person who has received it form any foreign source, either directly or through one or more persons, shall also be deemed to be foreign contribution with the meaning of this clause.
The background of keeping the policy aspects relating to the Act in the Department of Economic Affairs is that — i the Department of Economic Affairs is more closely involved in the formulation of policy responses at the macro level to the changing economic scenario; and ii the Department of Economic Affairs coordinates with RBI in respect of trade and invisible transactions and banking aspects of the Act.
For download of foreign exchange for most of the current account transaction, with exception of those listed in Schedule III to the Government of India Notification G. No E dated May 3, ; no permission from the Reserve Bank is required.
Extensive powers are available to banks authorised to deal in foreign exchange, known as authorised dealers. As a result, foreign exchange can be downloadd for practically all transactions which are of current account nature. Foreign Investment Implementation Authority FIIA - Government of India has set up the Foreign Investment Implementation Authority FIIA to facilitate quick translation of Foreign Direct Investment FDI approvals into implementation, to provide a pro-active one stop after care service to foreign investors by helping them obtain necessary approvals, sort out operational problems and meet with various Government agencies to find solution to their problems.
It has a strong record of actively encouraging the flow of FDI into the country through speedy and transparent processing of applications, and providing on-line clarification.
In case of ambiguity or a conflict of interpretation, the FIPB has always stepped in with an investor-friendly approach. Any person may sell or draw foreign exchange to or from an authorized person if such sale or drawal is a current account transaction.
The Central Government may, in public interest and in consultation with the Reserve Bank, impose such reasonable restrictions for current account transactions as may be required from time to time.
The definition is inclusive and any expenditure which is not a capital account transaction will be current account transaction.