Foreign Exchange Management Act

4.2

190 - Reviews

Foreign Exchange Management Act

119 People purchased

Foreign Exchange Management Act

4.4 (190 - Reviews)

119 People purchased

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After payment completion, We will call you to discuss the requirement
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Foreign Exchange MAnagement Act

External Payments across the border trades are encouraged by  Foreign Exchange Management Act (FEMA). FEMA Act in India was introduced in 1999 and replaced an earlier FERA (Foreign Exchange Regulation Act). FEMA is formulated to fill all the loopholes of FERA as several economic reforms were introduced under the FEMA.

 

Features Of FEMA:

  • The Central Government shall regulate the inflow/outflow of payments to and from a person situated outside the country.
  • All  transactions concerning foreign investments cannot be carried out without the approval of FEMA through Approved persons. 
  • The Government can restrict an authorised individual from carrying out foreign exchange deals within the current account.
  •  RBI can place restrictions on transactions from capital Account.
     

Penalties

If any person alters the provisions, rules, direction, regulation or order of FEMA he shall be liable to pay a penalty up to thrice the sum involved in such alteration or up to Rs.2 lakhs. Where such offence is a continuing one, he shall be liable to pay a further penalty which may extend to Rs.5,000 for every days.
 

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