Jan 30, 2015 by piyali sengupta, hnlu, raipur editors note. Foreign exchange management act fema features of fema. The foreign exchange management act, 1999 fema has been in force from 2000, thus replacing the old foreign exchange regulation act fera 1973. 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. The main objective behind the foreign exchange management act 1999 is to consolidate and amend the law relating. Facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market. Fema act 1999 foreign exchange management act, 1999 fema. Main features of the foreign exchange management act and. Following are the main features of foreign exchange management act, 1999. Foreign exchange management act, 1999 fema fera 1973 replaced by fema 1999 and came into effect from 01.
About contact collection buy install share download. Difference between fera and fema with comparison chart. These legislations, rules and regulations relating to foreign exchange management act, 1999, can be divided in to the followings. Insurance regulatory and development authority promoting. Download as docx, pdf, txt or read online from scribd. The federal emergency management administration fema prepares for large scale disasters such as hurricanes and floods. Archived from the original pdf on 9 september 2012. In the budget of 199798, the government had proposed to replace fera1973, by fema foreign exchange management act. Mrtp act monopolistic and restrictive trade practice.
Chairman five wholetime members four parttime members the irda bill was passed in december 1999 and became an act in april 2000. 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. 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. 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. Foreign exchange management act was enactedin1999 with 25 original notifications came into force with effect from june 1, 2000. Following are some salient features of mrtp act, 1969. This act may be called the foreign exchange management act, 1999.
Rbi plays a key role in the management of foreign exchange. Fema foreign exchange management act 1999 forex youtube. Facilitating foreign exchange transaction exports, imports, and payments thereof. 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. Salient features of fema foreign exchange management act. Foreign exchange and management act, 1999 academike.
Keeping in view the objective of promoting ease of doing business, a need was felt toconsolidatethe. 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. This document is highly rated by b com students and has been viewed 5200 times. The main features of the fema common law justice scribd. The reserve bank has also vide its notification no fema 15rb2000 dated 3 rd may 2000 notified atm cards and debit. In the 2010 act, the provision was made for suspension as well as cancellation of registrations granted to ngos was made. 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. 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. Act may be called the foreign exchange management act, 1999. 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. As their name specifies, fera lays emphasis on the regulation of currencies, whereas the fema manages. Foreign exchange management act fema 1999 came into effect in india from june 1, 2000 replacing earlier law fera 1973.
Fema part 1 foreign exchange management act 1999 please watch. The reserve bank may on an application made to it, permit any person resident in india to issue or transfer any foreign security. 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. Mar 29, 2019 in the budget of 199798, the government had proposed to replace fera1973, by fema foreign exchange management act. Apr 23, 2017 fera was very strict and even has a provision for imprisonment. 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. A brief introduction to these changes is as follows. The 2010 act was further improvement in the existing act and it introduced the more stringent provisions. Salient features of fema citizenship abolished and residentship introduced. 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. Fema 1999 foreign exchange management act 1999 fema part. Foreign exchange management act, 1999 fema free download as powerpoint presentation. Introduction to cyber law in india, salient features of it act, 2000, importance of cyber law, digital signatures, and cyber crimes.
Foreign exchange management act 1999 summary of key points. This act has been brought into force from november, 1986. 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 foreign exchange management act, 1999 fema is an act of the parliament of india to. 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. Apr 25, 2012 the overall structure of foreign exchange management act, 1999 is covered by legislations, rules and regulations. Instead of negative balance, there was substanital foreign exchange reserve so it was felt necessary to drop out the draconian law of fera. 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. The main features of the fema free download as word doc. Objectives of competition act, features of competition act, cat, offences and penalties under the act, competition commission of india.
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. 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. Fcra act and its implications on working of ngos gktoday. Foreign exchange management act, 1999 fema reserve bank of. 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. Features foreign exchange management act 2000, business. Foreign exchange management act, 1999 bare acts law. The main objective of fera was conservation and proper utilization of the foreign exchange resources of the country.
Main features of the foreign exchange management act fema. 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. Short title, extent, application and commencement act no. The practical aspects are covered in rules made by central government and regulations. The main functions of the directorate are as under. Apr 18, 2020 features foreign exchange management act 2000, business law b com notes edurev is made by best teachers of b com. What are the salient features of the environment protection. The foreign exchange management act fema was an act passed in the winter session of parliament in 1999, which replaced foreign exchange regulation act. Aug 14, 2014 fema came into act on the 1st day of june, 2000. Act, 1999 fema to replace the foreign exchange regulation. 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.
The irda is a ten member body appointed by the government of india consisting of structure and composition of irda promoting insurance. 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. Activities such as payments made to any person outside india or receipts from them, along with the deals in foreign exchange and. Foreign exchange management act, 1999 foreign travel a. The paper deals with the foreign exchange and management act, 1999 comprehensively. Practical issues in foreign transactions fema an overview. The foreign exchange management act 1999 or in short fema has been introduced as a replacement for earlier foreign exchange regulation act fera. Fema 1999 foreign exchange management act 1999 fema. Foreign investors, frequently hear the terms fera and fema, when they deal with india. Fema contains 7 chapters divided into 49 sections supreme legislation. Section 2 in the foreign exchange management act, 1999. This act seeks to make offences related to foreign exchange civil offences.
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