Best answer: What is Foreign Exchange Management Act 1999?

What is the definition of foreign exchange under Foreign Exchange Management Act 1999?

o the taking out of India to a place outside India any goods, o provision of services from India to any person outside India; • “foreign currency” means any currency other than Indian currency; • “foreign exchange” means foreign currency and includes,- o deposits, credits and balances payable in any foreign currency.

What are the objectives of FEMA Act 1999?

The primary objective of FEMA act was “facilitating external trade and payments and promoting the orderly development and maintenance of foreign exchange market in India”. FEMA was enacted by the Parliament of India in the winter session of 1999 to replace the Foreign Exchange Regulation Act (FERA) of 1973.

What do you mean by 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 is Foreign Exchange Management Act 2000 explain the main provision of this act?

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.

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What are the objectives of FERA?

D) The objective of FERA was to conserve foreign exchange resources which badly affected the comfortable foreign exchange reserves. So the FEMA came into existence. foreign exchange market In India. Regulation of foreign capital in India.

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.

What are the major provisions of Foreign Exchange Management Act?

Provisions of Foreign Exchange Management Act (FEMA) provides free transaction on current account subject to the guidelines by the RBI. Enforcement of Foreign Exchange Management Act (FEMA) is entrusted to a separate directorate, which undertakes investigations on contraventions of the Act.

Who administers the FEMA Act 1999?

FOREIGN EXCHANGE MANAGEMENT ACT, 1999 (42 of 1999) | Department of Revenue | Ministry of Finance | Government of India.

What are the powers of authorities working under FEMA 1999?

Central Government has the authority given by FEMA to impose restrictions on and supervise three things which are- payments made to any person outside India or receipts from them, forex and foreign security deals.