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.
What do you mean by FEMA?
The Central Government of India formulated an act to encourage external payments and across the border trades in India known as the
Foreign Exchange Management
Act. FEMA (Foreign Exchange Management Act) was introduced in the year 1999 to replace an earlier act FERA (Foreign Exchange Regulation Act).
What is Fera?
The
Foreign Exchange Regulation Act
(FERA) was legislation passed in India in 1973 that imposed strict regulations on certain kinds of payments, the dealings in foreign exchange (forex) and securities and the transactions which had an indirect impact on the foreign exchange and the import and export of currency.
What is the main objective of FEMA?
The primary objective of FEMA act was “
facilitating external trade and payments and promoting the orderly development and maintenance of foreign exchange market in India
”. FEMA was enacted by the Parliament of India in the winter session of 1999 to replace the Foreign Exchange Regulation Act (FERA) of 1973.
Why Fera was replaced by FEMA explain?
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 term resident incorporates that person Resident for 182 days in India has been brought in FEMA’s purview.
What is the features of FERA?
Salient Features of FERA:
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
.
Authorisation to the money changers for conversion of currencies
as per the rates determined by RBI.
What is famous and Fera?
FERA was
an act promulgated, to regulate payments and foreign exchange in India
, on the contrary FEMA is an act to promote orderly management of the foreign exchange in India. …
What is the full form of Cofeposa?
India Code:
Conservation of Foreign Exchange and Prevention of Smuggling Activities Act
, 1974.
Where is FEMA applicable?
FEMA is applicable to
all parts of India
. The act is also applicable to all branches, offices and agencies outside India owned or controlled by a person who is a resident of India. The FEMA head-office, also known as Enforcement Directorate is situated in New Delhi and is headed by a Director.
What is the full form of FEMA and Mrtp?
Monopolies and Restrictive Trade Practices Act (MRTP), 1969. Foreign Exchange Regulation Act (FERA), 1973.
Foreign Exchange Management Act
(FEMA), 1999.
What are FEMA guidelines?
According to FEMA guidelines for NRIs, sale proceeds of such assets are non-repatriable outside India without RBI approval.
Repatriation of up to USD 1 million per financial year
is allowed if you have inherited the property or retired from employment in India.
What are the main provisions of FEMA 1999?
- Dealing in foreign exchange, etc.
- Holding of foreign exchange, etc.
- Current account transactions.
- Capital account transactions.
- Export of goods and services.
- Realization and repatriation of foreign exchange.
- Exemption from realization and repatriation in certain cases.
Why FEMA declaration is required?
As per the extant provisions,
an exporter is required to submit the SDF form
along with Shipping Bills for export of goods. … Cconsequently, RBI has desired that the declaration of foreign exchange remittance under the Foreign Exchange Management Act, 1999 (given below) may be made a part of the Shipping Bill.
How is FEMA better than Fera?
FERA is an act which is enacted to regulate payments and foreign exchange in India, is FERA. FEMA an act initiated to facilitate external trade and payments and to promote orderly management of the forex market in the country. … In contrast violation of FEMA is a
compoundable offence
and the charges can be removed.
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.
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.
