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Objectives of Frema, Cofeposa Etc
Objectives of Frema, Cofeposa Etc
Its main objective is to facilitate external trade and payment and promote the orderly development’
and maintenance of foreign .exchange market in India. This act is expected to introduce more liberal
provisions in keeping with the requirements of liberalized regimes.
(a) Any person may sell or draw foreign exchange, without prior permission and can later on inform
RBI. This makes it a more positive feature.
(b) Under this act Enforcement Directorate (F, D) will be more investigating in nature.
(c) FEMA recognized the possibility of even the Capital Account convertibility i.e. It classifies foreign
exchange transaction and current account transactions.
(e) Above all FEMA is more concerned with the management instead FERA (Foreign Exchange
Regulation Act) was more concerned about exchange regulation or control.
MLP covers wide range of crimes including various sections of Indian Penal Code (IPC), Prevention
of Corruption Act, Narcotic Drugs and Psychotropic Substances Act, Arms and SITA. Its important
features etc.
a) MLP aims to prevent transfer of funds in order to conceal a transaction of dubious or illegal origin.
b) It seems to check generation of black money by making, the offence cognizable and non-boilable.
c) All rights and title of confiscated properties shall vest with the Central Government.
d) Under MLP designated officers will have powers to arrest an individual even on mere suspicious.