What is the full form FEMA?
FEMA (Foreign Exchange Management Act) was introduced in the year 1999 to replace an earlier act FERA (Foreign Exchange Regulation Act). …
Why was FERA Act changed to FEMA act?
The Foreign Exchange Regulation Act (FERA) was passed in 1973; the main purpose of which was to ensure the use of foreign exchange. The FERA was creating obstacles in the development of the country so government replaced it by FEMA in 1999.
Who introduced FEMA?
FEMA was proposed by the both house of the parliament in Dec. 1999. After the approval of president, FEMA 1999 has come into force w.e.f. June, 2000. Under the FEMA, provisions related to foreign exchange have been modified and liberalized so as to simplify foreign trade.
What are the salient features of FERA?
Salient Features of FERA:
- Authorisation by RBI to any person/company to deal in foreign exchange.
- Authorisation to the dealers by the Reserve Bank of India for transacting foreign currencies, subject to review and revocation of the authorisation in the case of non-compliance.
What are the main features of FEMA?
What are the features of FEMA? FEMA gives power to the central government for imposing restrictions on activities like making payments to a person situated outside of the country or receiving money through them. Apart from this, foreign exchange as well as foreign security deals are also restricted by FEMA.
What are the main objectives of FERA?
The objective of FERA was to regulate certain payment dealings in foreign exchange and securities transactions that indirectly affects foreign exchange of import and export of currency and to conserve precious foreign exchange and to optimize the proper utilization of foreign exchange so as to promote the economic …
What is FERA company?
“: The FERA companies are those companies which are incorporated in India in which the non-resident interest (viz., foreign equity share capital) was more than 40%.
Is Fera better than Fera?
Foreign Exchange Management Act, 1999 (FEMA) emerged as a replacement or say an improvement over the old Foreign Exchange Regulation Act, 1973 (FERA)….Comparison Chart.
| Basis for Comparison | FERA | FEMA |
|---|---|---|
| Approach towards forex transactions | Rigid | Flexible |
| Basis for determining residential status | Citizenship | More than 6 months stay in India |
What are the similarities between FERA and FEMA?
The similarities between FERA and FEMA are as follows: The Reserve Bank of India and central government would continue to be the regulatory bodies. Presumption of extra territorial jurisdiction as envisaged in section (1) of FERA has been retained.
How many sections are in Fera?
FERA consists of 81 complex sections. Under FERA, any offence was a criminal one which included imprisonment as per code of criminal procedure, 1973. To regulate acquisition, holding etc of immovable property in India by non- residents • To regulate certain payments .
Is FEMA in force in India?
Yes, still in force in India. The Foreign Exchange Management Act (FEMA) was created in 1999 to replace the outdated Foreign Exchange Regulation Act (FERA) of 1973. FEMA was a modernisation of the Indian economy and created to liberalise and deregulate the Indian market.
What are FEMA guidelines?
Foreign Exchange Management Act or in short (FEMA) is an act that provides guidelines for the free flow of foreign exchange in India. It has brought a new management regime of foreign exchange consistent with the emerging frame work of the World Trade Organisation (WTO).
What is the purpose of FEMA?
The Federal Emergency Management Agency (FEMA) is the federal agency responsible for leading the Nation’s efforts to prepare for, protect and mitigate against, respond to, and recover from the impacts of natural disasters and man-made incidents or terrorist events.