What are the object of FEMA?
Objectives of FEMA The main objective for which FEMA was introduced in India was to facilitate external trade and payments. In addition to this, FEMA was also formulated to assist orderly development and maintenance of the Indian forex market.
What is FEMA 2000 explain its objective?
This law’s main objective is to increase the flow of foreign exchange in India. Now , under this law, you can bring foreign currency in India without any legal barrier . According to section 3 of FEMA 2000,” only authorized person under the govt. terms can deal in foreign exchange in India.
What are the objectives of FERA?
D) The objective of FERA was to conserve foreign exchange resources which badly affected the comfortable foreign exchange reserves. So the FEMA came into existence. foreign exchange market In India. Regulation of foreign capital in India.
Why was Foreign Exchange Management Act 1999 FEMA enacted given its objectives and reasons?
FEMA. FERA was implemented to regulate foreign payments and to ensure optimum use of foreign currency in India. FEMA aims to promote foreign trade, foreign payments and to increase the size of foreign exchange reserve in the country. It is an old enactment and was approved by the Parliament in the year 1973.
Which of the following transactions are prohibited under FEMA 1999 unless permission of RBI is obtained?
In terms of Section 5 of the FEMA, persons resident in India 1 are free to buy or sell foreign exchange for any current account transaction except for those transactions for which drawal of foreign exchange has been prohibited by Central Government, such as remittance out of lottery winnings; remittance of income from …
What are accounts permitted under FEMA 1999?
Bank Accounts as per Foreign Exchange Management Act, 1999
| S. No. | Topics |
|---|---|
| A. | 3. Permitted Debits |
| 4. Joint Accounts | |
| 5. Tax Exemption | |
| B. | Foreign Currency (Non-resident) Account (Banks) Scheme – FCNR (B) Account |
What replaced FERA?
FERA was repealed in 1998 by the government of Atal Bihari Vajpayee and replaced by the Foreign Exchange Management Act, which liberalised foreign exchange controls and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 are the features of FEMA Act 1999?
Main Features of Foreign Exchange Management Act, 1999
| Category | Authorized Dealer – Category I | Full Fledged Money Changers |
|---|---|---|
| Activities Permitted | As per RBI guidelines, all current and capital account transactions | Purchase of foreign exchange and sale for private and business visits abroad |
Who investigates the contravention of provisions of FEMA 1999?
Ans. When a person is made aware of the contravention of the provisions of FEMA, 1999 by the Reserve Bank or any other statutory authority or the auditors or by any other means, she/he may apply for compounding. One can also make an application for compounding, suo mo-to, on becoming aware of the contravention. Q.
What is the main change brought in FEMA compared to Fera?
The first and foremost difference between FERA and FEMA is that the former requires previous approval of Reserve Bank of India (RBI), whereas the latter does not require RBI’s approval, except when the transaction is related to foreign exchange.
What is Fera violation?
Any person who willfully violates any provision of FARA or any regulation thereunder, or in any registration statement or supplement thereto or in any other document filed with or furnished to the Attorney General under the provisions of FARA willfully makes a false statement of a material fact or willfully omits any …
Why did Fera change to FEMA?
FEMA has been introduced as a replacement of FERA, as the Act could not survive the post- liberalization policies. The offences as in FERA which were criminal we shifted to civil offences in FEMA. The similarities like governing bodies, RBI, and central Government would continue.
What is foreign exchange Management Act 1999 (FEMA)?
To manage and balance this inflow and outflow of the foreign currency is the objective. RBI is the governing authority for this management. For this reason, this Act is named as Foreign Exchange Management Act, 1999. Foreign Exchange Regulation Act, 1973 (FERA) was replaced by the Foreign Management Act, 1999 (FEMA).
When did FEMA come into force?
On June 1, 2000, vide notification No G.S.R. 371 (E) the Foreign Exchange Management Act, 1999 (FEMA [or] Act) was brought in force to replace the then existing FERA.
What is Section 4 of the FEMA Act 1999?
Further, Section 4 of the Act states that no person resident in India shall acquire, hold, own, possess or transfer any foreign exchange, foreign security or any immovable property situated outside India. What are the Capital Account transactions (CAT) and Current Account transactions (CUAT) under FEMA Act, 1999?
What is the violation of FEMA?
The violation of FEMA is a civil offence. FEMA is more concerned with the management rather than regulations or control. FEMA is a regulatory mechanism that enables RBI and the Central Government to pass regulations and rules relating to foreign exchange in tune with the foreign trade policy of India.