When was Fera replaced by FEMA?
1999
When did the FEMA Act come into force?
The Parliament has enacted the Foreign Exchange Management Act,1999 to replace the Foreign Exchange Regulation Act, 1973. This Act came into force on the 1st day of June, 2000.
Which act was replaced with the introduction of the FEMA 2000?
The Foreign Exchange Management Act (1999) or in short FEMA has been introduced as a replacement for earlier Foreign Exchange Regulation Act (FERA). FEMA became an act on the 1st day of June, 2000.
What was the need of FEMA when Fera was there?
FERA was conceived with the notion that Foreign Exchange is a scarce resource. FEMA was conceived with the notion that Foreign Exchange is an asset. FERA rules regulated foreign payments. FEMA focused on increasing the foreign exchange reserves of India, focused on promoting foreign payments and foreign trade.
When was Fera abolished?
How did FEMA replace FERA?
After the amendment of FERA in 1993, it was decided that the act would become the FEMA. FERA was repealed in 1998 by the government of Atal Bihari Vajpayee and replaced by the Foreign Exchange Management Act, which liberalised foreign exchange controls and restrictions on foreign investment.
What was Fera replaced with?
Because Federal Emergency Relief Act of 1933 mandated that FERA should end two years after its inception, a new program was needed to take its place. The program put in place was called the Works Progress Administration (WPA), and it took over and improved the programs put in place by FERA.
What are the different types of FEMA?
Broadly speaking FEMA, covers, three different types of categories, and deals differently with them….Categories and status of different persons
- Person.
- Person Resident In India.
- Person Resident Outside India.
What is the penalty for violation of FEMA Act?
Under Fema, the adjudicator (an officer with the ED) can impose a penalty three times the size of the contravention involved where the sum is quantifiable. In case the contravention is not quantifiable, the penalty is set at Rs 2 lakh.
Is FEMA violation a criminal Offence?
In terms of penalty and punishment as well, FERA provided for penalty upto five times the amount involved in contravention[5] and any offence under FERA was a criminal offence punishable with imprisonment.
Who enforces FEMA?
| Enforcement Directorate | |
|---|---|
| Governing body | Government of India |
| Constituting instruments | Foreign Exchange Management Act, 1999 Prevention of Money Laundering Act, 2002 |
| Specialist jurisdictions | Anti corruption. |
| Operational structure | |
How many sections are in FEMA?
49 Sections
Who can make rules under FEMA?
Section 6 (3) provides powers to Reserve Bank to prohibit, restrict or regulate various transactions referred to in the sub-clauses of that sub-section, by making Regulations.
Is FEMA still in force in India?
Is FEMA still 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.