An act to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in india. In the 2010 act, the provision was made for suspension as well as cancellation of registrations granted to ngos was made. Apr 23, 2017 fera was very strict and even has a provision for imprisonment. Fema act 1999 foreign exchange management act, 1999 fema. A person resident in india may issue or transfer any foreign security only in accordance with the foreign exchange management act, 1999, its rules, regulations or directions.
The 2010 act was further improvement in the existing act and it introduced the more stringent provisions. Following are some salient features of mrtp act, 1969. The reserve bank has also vide its notification no fema 15rb2000 dated 3 rd may 2000 notified atm cards and debit. This act may be called the foreign exchange management act, 1999.
The foreign exchange management act, 1999 was enacted to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of. Facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market. Act may be called the foreign exchange management act, 1999. Archived from the original pdf on 9 september 2012. Foreign exchange management act, 1999 an act to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in india be it enacted by parliament in the fiftieth year of the republic of india as follows. A brief introduction to these changes is as follows. The foreign exchange management act fema was an act passed in the winter session of parliament in 1999, which replaced foreign exchange regulation act. Salient features of fema foreign exchange management act. Fera was not suitable in the new and liberal economy, thus it was replaced by foreign exchange management act fema 1999, which came into effect from 1st june 2000. Main features of the foreign exchange management act fema. Competition and consumer laws 10 hours the competition act, 2002. Main features of the foreign exchange management act and.
Fema 1999 foreign exchange management act 1999 fema. Apr 25, 2012 the overall structure of foreign exchange management act, 1999 is covered by legislations, rules and regulations. Salient features of fema citizenship abolished and residentship introduced. Fema 1999 foreign exchange management act 1999 fema part. The foreign exchange management act, 1999 fema has been in force from 2000, thus replacing the old foreign exchange regulation act fera 1973. Fema is applicable to a person resident in india as opposed to feras citizenship criteria which means if the status of any person, who is a citizen of india or not, is resident he or she shall be covered under the fema for any forex transaction as per the. Introduction to cyber law in india, salient features of it act, 2000, importance of cyber law, digital signatures, and cyber crimes. An act to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in india be it enacted by parliament in the fiftieth year of the republic of india as follows. Difference between fera and fema with comparison chart. The foreign exchange management act 1999 or in short fema has been introduced as a replacement for earlier foreign exchange regulation act fera. Foreign exchange management act, 1999 summary bankexamstoday.
Mar 29, 2019 in the budget of 199798, the government had proposed to replace fera1973, by fema foreign exchange management act. The income tax department never asks for your pin numbers, passwords or similar access information for credit cards, banks or other financial accounts through email the income tax department appeals to taxpayers not to respond to such emails and not to share information relating to their credit card, bank and other financial accounts. The main features of the fema free download as word doc. Instead of negative balance, there was substanital foreign exchange reserve so it was felt necessary to drop out the draconian law of fera. These legislations, rules and regulations relating to foreign exchange management act, 1999, can be divided in to the followings. Foreign exchange management act, 1999 bare acts law. The main features of the fema common law justice scribd. Apr 18, 2020 features foreign exchange management act 2000, business law b com notes edurev is made by best teachers of b com. Main features of foreign exchange management act 1999. The irda is a ten member body appointed by the government of india consisting of structure and composition of irda promoting insurance. The foreign exchange management act, 1999 popularly known as fema act 1999, is an act of the parliament of india to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in india. Foreign exchange management act, 1999 fema reserve bank of.
Aug 12, 2017 foreign exchange management act, 1999 fema emerged as a replacement or say an improvement over the old foreign exchange regulation act, 1973 fera. The main objective behind the foreign exchange management act 1999 is to consolidate and amend the law relating. The main functions of the directorate are as under. Keeping in view the objective of promoting ease of doing business, a need was felt toconsolidatethe. Features foreign exchange management act 2000, business. As their name specifies, fera lays emphasis on the regulation of currencies, whereas the fema manages. The foreign exchange management act, 1999 42 of 1999 an act to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in india. Aug 14, 2014 fema came into act on the 1st day of june, 2000. Foreign exchange management act fema features of fema.
Insurance regulatory and development authority promoting. The federal emergency management administration fema prepares for large scale disasters such as hurricanes and floods. The paper deals with the foreign exchange and management act, 1999 comprehensively. About contact collection buy install share download. Facilitating foreign exchange transaction exports, imports, and payments thereof. Jan 30, 2015 by piyali sengupta, hnlu, raipur editors note. The practical aspects are covered in rules made by central government and regulations.
The foreign exchange management act, 1999 fema is an act of the parliament of india to. Download as docx, pdf, txt or read online from scribd. Foreign investors, frequently hear the terms fera and fema, when they deal with india. Rbi plays a key role in the management of foreign exchange. This document is highly rated by b com students and has been viewed 5200 times. Chairman five wholetime members four parttime members the irda bill was passed in december 1999 and became an act in april 2000. This act seeks to make offences related to foreign exchange civil offences. Fema contains 7 chapters divided into 49 sections supreme legislation. Fema foreign exchange management act 1999 forex youtube. The main objective of fera was conservation and proper utilization of the foreign exchange resources of the country.
Fema was proposed by the both house of the parliament in dec. Following are the main features of foreign exchange management act, 1999. Objectives of competition act, features of competition act, cat, offences and penalties under the act, competition commission of india. What are the salient features of the environment protection. Practical issues in foreign transactions fema an overview.
Foreign exchange management act, 1999 foreign travel a. Foreign exchange and management act, 1999 academike. Foreign exchange management act was enactedin1999 with 25 original notifications came into force with effect from june 1, 2000. Fema part 1 foreign exchange management act 1999 please watch. Short title, extent, application and commencement act no. In exercise of the powers conferred by section 9 and clause e of subsection 2 of section 47 of the foreign exchange management act, 1999 42 of 1999, and in supersession of notification no. Foreign exchange management act, 1999 fema after liberalisation in 1992, various sectors opened for fdi time to time which radically changed the foreign exchange position. The new mrtp act was greatly influenced by its foreign counterparts such as sherman act and clayton act of usa, the mrtp inquiry and control act, 1948 and the resale prices act, 1964 of the uk, etc. The foreign exchange management act, 1999 fema is an act of the parliament of india to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in india. In the budget of 199798, the government had proposed to replace fera1973, by fema foreign exchange management act. Fema 102000rb dated may 3, 2000, as amended from time to time, the reserve bank of india makes the following regulations for opening, holding and.
This act has been brought into force from november, 1986. Mrtp act monopolistic and restrictive trade practice. Foreign exchange management act, 1999 fema fera 1973 replaced by fema 1999 and came into effect from 01. Thus at the turn of the millennium and indias coming of age fema was introduced in 2000, on 1 st june, with the foreign exchange management act, 1999. The main objective behind the foreign exchange management act 1999 is to consolidate and amend the law relating to foreign exchange with objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in india.
Fema is a regulatory mechanism that enables the reserve bank of india to pass regulations and the central government to pass rules relating to foreign exchange in tune with the foreign trade policy of india. Insurance regulatory and development authority act, 1999 an act to provide for the establishment of an authority to protect the interests of holders of insurance policies, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or. Fema gives power to the central government for imposing restriction on activities like making payments to a person situated outside of the country or receiving money through them. Foreign exchange management act 1999 summary of key points. Activities such as payments made to any person outside india or receipts from them, along with the deals in foreign exchange and. Section 2 in the foreign exchange management act, 1999. Foreign exchange management act fema 1999 came into effect in india from june 1, 2000 replacing earlier law fera 1973. Act, 1999 fema to replace the foreign exchange regulation. The reserve bank may on an application made to it, permit any person resident in india to issue or transfer any foreign security. Foreign exchange management act, 1999 fema free download as powerpoint presentation.
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