Professional Documents
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FEMA
• Objectives
To facilitate external trade and
payments
To promote the orderly development
and maintenance of foreign
exchange market
FEMA 2
• Introduction: -
Foreign exchange transactions were
regulated by Foreign exchange regulation
act (FERA), 1973
Following the liberalization ushered in
1991 some amendments were made to
FERA in 1993 there was a lot demand to
bring certain major changes in FERA in the
light of economic changes took place
Consequently a new act was formed to
replace FERA, known as Foreign exchange
management act (FEMA), 1999
FEMA 3
Section 3 of FEMA
FEMA 6
(e) Any borrowing or lending in rupees in whatever form
or whatever name called between a person resident in
India and a person resident outside India;
(f) Deposits between persons resident in India and a
person resident outside India
(g) Export, Import or holding of currency or currency
notes
(h) Transfer of immovable property outside India other
than a lease not exceeding five years by a person
resident outside India
(i) Acquisition or transfer of immovable property in India
other than a lease not exceeding five years by a person
resident outside India
(j) Giving of guarantee or surety in respect of any debt
obligation or the liability
1. By a person resident in India and owed to a person
resident outside India
or
2.
FEMA
By a person resident outside India 7
Export of goods and services
Every exporter of goods shall famish to the RBI or to such other
authority the following
FEMA 8
Realization and Repatriation of foreign
exchange:-
Any person in this concern shall have to follow
the reasonable steps to realize and repatriate it
to India with or with in the time in the manner
prescribed by the act
FEMA 10
FERA V/s FEMA:-
1. In FEMA only the specified acts related to
foreign exchange are regulated while in FERA
anything and everything that has to do with
foreign exchange was controlled
FEMA 11
QUESTIONS
FEMA 12