This law’s main objective is to increase the flow of foreign exchange in India. Now , under this law, you can bring foreign currency in India without any legal barrier . According to section 3 of FEMA 2000,” only authorized person under the govt. terms can deal in foreign exchange in India.
What are the main provisions of Foreign Exchange Management Act?
Major Provisions of FEMA Act 1999:
Control over the realization of export proceeds. Dealing in foreign exchange through authorized persons like an authorized dealer or money changer etc. Any person can sell or withdraw foreign exchange, without any prior permission from RBI and then can inform RBI later.
How many provisions are there in FEMA?
PROVISIONS FERA consisted of 81 sections, and was more complex FEMA is much simple, and consist of only 49 sections.
What is Foreign Exchange Management Act 1999 describe its main provisions briefly?
The Foreign Exchange Management Act, 1999 (FEMA), is an Act of the Parliament of India “to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India”.
What are the main objectives of FEMA?
Objectives of FEMA
The main objective for which FEMA was introduced in India was to facilitate external trade and payments. In addition to this, FEMA was also formulated to assist orderly development and maintenance of the Indian forex market.
What are the main objects of the Foreign Exchange Management Act 1999?
The object of the Act is to consolidate and amend the law relating to foreign exchange with objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India.
What are the provisions in respect of possession and retention of foreign currency under FEMA?
Following are the limits for possession or retention of foreign currency or foreign coins, namely :- • Possession without limit of foreign currency and coins by an authorised person within the scope of his authority ; • possession without limit of foreign coins by any person; • retention by a person resident in India …
What is import under Foreign Exchange Management Act 1999?
The term ‘import’ means bringing into India any goods or services- section (p) of FEMA. Governing Regulation. Import of Goods and Services into India is being allowed in terms of Section 5 of the Foreign Exchange Management Act 1999 (42 of 1999), read with Notification No.
Why is Foreign Exchange Management Act important in transaction?
In India, the Foreign Exchange Management Act (FEMA) governs foreign exchange transactions and remittance payments, and the Reserve Bank overlooks the management of the foreign market. FEMA provides a framework for the smooth functioning of border trades and developing the Indian foreign exchange market.
How does foreign exchange regulation act work critically analyze the statement?
Some of the key features of the act are as follows: Authorisation by RBI to any person/company to deal in foreign exchange. Authorisation to the dealers by the Reserve Bank of India for transacting foreign currencies, subject to review and revocation of the authorisation in the case of non-compliance.
Who investigates the contravention of provisions of FEMA 1999 *?
Ans. When a person is made aware of the contravention of the provisions of FEMA, 1999 by the Reserve Bank or any other statutory authority or the auditors or by any other means, she/he may apply for compounding. One can also make an application for compounding, suo mo-to, on becoming aware of the contravention.
What is the meaning of foreign exchange management?
Foreign exchange management is the process of limiting a company’s exposure to foreign currency fluctuations. In most cases, this is done by companies that engage in foreign trade.
What are the powers of Reserve Bank of India under the Foreign Exchange Management Act 1999?
Borrowing and lending in foreign exchange or to a foreign person; Export/import of currency or currency notes; Transfer of immovable property outside India; Giving guarantee or surety where foreign exchange transaction is involved – Section 6(3)
What is FEMA 2000 discuss its main provisions?
This law’s main objective is to increase the flow of foreign exchange in India. Now , under this law , you can bring foreign currency in India without any legal barrier . According to section 3 of FEMA 2000 ,” only authorized person under the govt. terms can deal in foreign exchange in India .
What are the salient features and objectives of Foreign Exchange Management Act FEMA?
The main objectives of FEMA are to solidify the law relating to foreign exchange with an intention to facilitate exports, imports and payments and to promote the development and maintenance of the foreign exchange market in an orderly manner in India.
Which among the following is prohibited under the FEMA Act?
In terms of the Rules 3, drawal of exchange for the following transactions is prohibited. Remittance of income from racing/riding etc. or any other hobby. Remittance for purchase of lottery tickets, banned/proscribed magazines, football pools, sweepstakes, etc.