FOREGIN EXCHANGE MANAGEMENT ACT,1999

OFFICES AND AGENCIES OUTSIDE INDIA OWNED AND CONTROLLED BY A PERSON RESIDED IN INDIA AND ALSO TO ANY CONTRAVENTION COMMITTED OUTSIDE INDIA BY ANY PERSON TO WHOM THIS ACT APPLIES (SEC.FORERIN EXCHANGE MANAGEMENT ACT . IT EXTENDS TO THE WHOLE OF INDIA . IT APPLIES TO ALL BRANCHES.1999 IT CAME INTO FORCE ON 1 JUNE 2000.1) .

REGULATION AND MANAGEMENT OF FOREGIN EXCHANGE  DEALING IN FOREGIN EXCHANGE  HOLDING OF FOREGIN EXCHANGE  CURRENT ACCOUNT TRANSACTIONS CAPITAL ACCOUNT TRANSACTION  EXPORT OFGOOD AND SERVICES  REALIZATION AND REPATRIATION OF FOREIGN EXCHANGE  EXEMPTION FROM REALIZATION AND REPATRIATION INCERTAIN CASES .

1) DEALING IN FOREGIN EXCHANGE . (sec .3) No person except with the general or special permission of the reserve bank of India shall deal in or transfer any foreign exchange or foreign security to any person not being an authorized person .

own possess or transfer any foreign exchange security or any immovable property situated outside India .HOLDING OF FOREGIN EXCHANGE (sec.hold. 4) No person resident in India shall acquire.

impose reasonable restrictions for such transaction .CURRENT ACCOUNT TRANSACTIONS (sec. The central government may in public interest and in consultation with the reserve bank.5) Any person may sell or draw foreign exchange to or from an authorized person if such sale or draw is a current account transaction.

CAPITAL ACCOUNT TRANSACTION (sec.6) 1) Any person may sell or draw foreign exchange or from an authorized person for a capital account transaction 2) The reserve bank may prohibit .resident or regulation a) transfer of any foreign security by a person resident in India b) transfer of any security by a person resident in india .

3) A PERSON RESIDENT IN INDIA MAY. OWN . HOLD. SECURITY OR PROPERTY WAS ACQUIRED HELD OR OWNED BY SUCH PERSON WHEN HE WAS RESIDENT OUTSIDE INDIA .

EXPORT OF GOODS AND SERVICES (sec.7) Section 7 of foreign exchange management act provides for certain obligation on exports of goods and service to furnish certain returns information to reserve bank of India .

REALIZATION AND REPATRIATION OF FOREIGN EXCHANGE (sec. WHERE ANY AMOUNT OF FOREGIN EXCHANGE IS DUE OR HAS ACCRUED TO ANY PERSON RESIDENT IN INDIA SUCH PERSON SHALL TAKE ALL REASONABLE STEPS TO REALIZE AND REPATRIATE TO INDIA SUCH FOREGIN EXCHANGE WITHIN SUCH PERIOD AND IN SUCH MANNER AS AY BE SPECIFIED BY THE RESERVE BANK .8) IN THIS ACT.

9) The provision of sections 4&8 shall not apply to the following namely  possession of foreign or foreign coins by any person up to such limit as the reserve bank of India may specify  foreign currency account held or operated by such person or class of person and the limit up to which reserve bank of India may specify Foreign exchange acquired or received before 8 July 1947 .EXEMPION REALIZATION AND REPATRIATION IN CERTAIN CASES (sec.

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