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DR. GURUDATT KAKKAR
Dr. Gurudatt Kakkar
Dr.Objectives y To facilitate external trade & payments y To promote the orderly development & maintenance of foreign exchange market. Gurudatt Kakkar .
Dr.Restriction while dealing in Foreign Exchange ± Except as provided in terms of the act or with the general or special permission of the Reserve Bank no person shall ± y Deal in any foreign exchange or foreign security with any person other than an authorised person y Make any payment to or for the credit of any person resident outside India in any manner. Gurudatt Kakkar .
. Dr. y Receive otherwise through an authorised person any payment by order or on behalf of any person resident outside India in any manner. y Enter in to any financial transaction in India as a consideration for or in association with acquisition or creation or transfer of a right to acquire any asset out side India by any person. Gurudatt Kakkar .Restriction while dealing in Foreign Exchange ± Contd«.
foreign security or any immovable property situated outside India.Holding of Foreign Exchange y No Person resident in India shall acquire. own posses or transfer or Transfer any foreign exchange. hold. Gurudatt Kakkar . Dr.
Current Account Transaction y FEMA permits dealing in foreign exchange through authorised persons for current account transactions. Dr. Gurudatt Kakkar . However the central government can impose reasonable restriction in public interest.
Gurudatt Kakkar . Dr.Capital Account Transactions y Any person may sell or draw foreign exchange to or from an authorised person for a capital account transaction permitted by RBI in consultation with central government.
y Any borrowing or lending in foreign exchange in whatever form or by whatever form or by whatever name called. y Transfer or issue of any foreign security by a person resident in India. office or agency in India of a person resident of out of India. y Transfer or issue of any foreign security by any branch.Capital Account Transactions RBI may prohibit or regulate following ± y Transfer or issue of any foreign security by a person resident in India. Gurudatt Kakkar . Dr.
import or holding or currency or currency notes. other then a lease not exceeding five years by a person resident in India. y Transfer of immovable property out side India. Gurudatt Kakkar .Capital Account Transactions y Any borrowing or lending in Rupees in whatever form or by whatever name called between a person resident in India & a person resident outside India. y Deposits between persons resident in India & a person resident outside India. y Export. Dr.
export value etc.Export of Goods & Services Every exporter of goods shall ± y Furnish to the RBI or to such authority a declaration containing material particular. y Furnish to the RBI such information as may be required by RBI Dr. amount. Gurudatt Kakkar .
Contravention & Penalties y Penalty up to thrice the amount involved where it is quantifiable or up to Rs. y If fails to pay the fine then imprisonment up to 90 days. 2 lakhs where it is not quantifiable. Gurudatt Kakkar .per day. If contravention continues then a penalty of Rs. Dr. 5000/.
Gurudatt Kakkar . y Simplified v/s Complicated y Reform oriented V/s Threat oriented Dr. 1973 V/s FEMA 1999 y FEMA smaller enactment with 49 section against 81 of FERA.FERA.