Foreign exchange management act, 1999

Garg BBA(B&I) 2nd shift, 3rd Sem

-Nilakshi

INTRODUCTION:-

Liberalization

ushered

in 1991. Demand to bring certain major changes in FERA in the light of economic changes took place. A ne act as formed to replace FERA! kno n as Foreign e"change management act #FE$A%! 1999.

 To facilitate external

trade and payments.

To promote the

Objectives

orderly development and maintenance of foreign exchange market

Sections Of FEMA
SECTION 3 :

Dealings in foreign exchange and foreign securities and payments to and receipts from any unauthorized person.

SECTION ! :

Dealings in foreign exchange and foreign securities and payments to and receipts from any person outside India.

Current account

&

Capital account

Dealing in current & Capital accounts. Central Government and RBI rules.

Realization and Repatriation of foreign exchange:-

Reasonable steps to realize to India. Within the time period & the manner prescribed by the act.

Contravention and penalties:For an& kind of contra'ention under this act defaulter is liable to pa& up to thrice the amount in'ol'ed here it is (uantifiable Up to Rs. ) lakhs *here not (uantifiable +f such contra'ention is continued further penalt& hich ma& e"tend to Rs. ,!--- for e'er& da& after the first da& .

Administration of the Act

Rules laid down by RBI in consultation with Central Government. The Act requires central Government to appoint :- ! Adjudicating Authorities, 2) one or more Special Directors . Appellate Tribunal to be established.

FERA V/s FEMA:.

In "#$A only the speci%ied acts related to %orei&n e'chan&e are re&ulated while in "#RA anythin& and everythin& that has to do with %orei&n e'chan&e was controlled The ob)ective o% "#$A is to %acilitate trade while that o% "#RA is to prevent misuse "#$A is a much smaller enactment only +, sections a&ainst - sections o% "#RA.

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