- Free transactions on current accounts subject to reasonable restrictions that may be imposed.
- RBI controls capital account transactions.
- Control over the realization of export proceeds.
What are the main provisions of Foreign Exchange Management Act 2000?
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 main provisions of Foreign Exchange Management Act 1999?
The Foreign Exchange Management Act, 1999 also known as FEMA is an enactment which deals primarily with the provisions relating
to cross-border trade and payments thereof
. It defines the procedures, formalities, dealings of all foreign exchange transactions in India.
What are the objectives of Foreign Exchange Management Act?
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.
What are the major provisions of FEMA?
- 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.
What is FEMA and its provisions?
Provisions of Foreign Exchange Management Act (FEMA)
provides free transaction on current account subject to the guidelines by the RBI
. Enforcement of Foreign Exchange Management Act (FEMA) is entrusted to a separate directorate, which undertakes investigations on contraventions of the Act.
What are the features of FEMA?
| 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 |
|---|
What is the difference between FEMA 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 provision of foreign currency?
Foreign exchange controls are various forms
of controls imposed by a government on the purchase/sale of foreign currencies
by residents, on the purchase/sale of local currency by nonresidents, or the transfers of any currency across national borders.
Who regulates foreign exchange?
The Reserve Bank of India
, is the custodian of the country’s foreign exchange reserves and is vested with the responsibility of managing their investment. The legal provisions governing management of foreign exchange reserves are laid down in the Reserve Bank of India Act, 1934.
What is the penalty for violation of FEMA Act?
Where the amount cannot be quantified the penalty may be imposed upto two lakh rupees. If, the contravention is continuing everyday, then
Rs. Five Thousand for every day after the first day
during which the contravention continues.
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 Foreign Exchange Management Act 2000?
FEMA
became an
act
on the 1st day of June,
2000
. … The main objective behind the
Foreign Exchange Management Act
(1999) is to consolidate and amend the
law
relating to
foreign exchange
with the objective of facilitating external trade and payments.
What is indirect quote in foreign exchange?
An indirect quote in the foreign exchange markets
expresses the amount of foreign currency required to buy or sell one unit of the domestic currency
. An indirect quote is also known as a “quantity quotation,” since it expresses the quantity of foreign currency required to buy a unit of the domestic currency.
What do you understand by foreign exchange management?
Foreign exchange management is
the process of limiting a company’s exposure to foreign currency fluctuations
. In most cases, this is done by companies that engage in foreign trade.
What are the salient features of FERA and FEMA?
What are the salient features of FERA and FEMA?
It gives full freedom to a person resident in India, who was earlier resident outside India
, to hold/own/transfer any foreign security/immovable property situated outside India and acquired when s/he was resident.
