Acts foreign exchange management act, 1999 income tax department all acts foreign exchange management act, 1999. The legislation by indian parliament and it came into force w. Fema was introduced because the fera didnt fit in with postliberalisation policies. Highlights on foreign exchange management act fema, 1999. Foreign exchange management act, 1999 bare acts law. Administration of the foreign exchange management act, 1999 42 of 1999 other than enforcement work mentioned under the department of revenue rajaswa vibhag. 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. Bare acts in india statutes and laws free download bare acts and case laws in india have been extensively discussed here, the laws pass by the parliament and its implementation in the courts are commonly discussed here in length. The bare act is an expression used to specify the content of law, bereft of any interpretative gloss.
Act means the foreign exchange management act, 1999 42 of 1999 ii. 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. Reserve bank of india foreign exchange management act. Foreign exchange management act, 1999 fema a bill based on the recommendations of the task force, was introduced in the lok sabha on 4 august, 98. These legislations, rules and regulations relating to foreign exchange management act, 1999, can be divided in to the followings. In exercise of the powers conferred by clause b of subsection 3 of section 6 and section 47 of the foreign exchange management act, 1999 42 of 1999 and in supersession of.
Foreign exchange and management act, 1999 academike. An authorised person shall, before undertaking any transaction in foreign exchange on behalf of any person, require that person to make such declaration and to give such information as will reasonably satisfy him that the transaction will not involve, and is not designed for the purpose of any contravention or evasion of the provisions of this act or of any rule, regulation, notification. Fathoming fema overview of provisions of foreign exchange. Foreign exchange management transfer or issue of security by a person resident outside india regulations, 2017. Foreign exchange management act, 1999 fema reserve bank. Foreign exchange management act department for promotion. As their name specifies, fera lays emphasis on the regulation of currencies, whereas the fema manages foreign exchange, i.
Save as otherwise provided in this act, rules or regulations made thereunder, or with the general or special permission of the reserve bank, no person shall. The reserve bank may, for the purpose of securing compliance with the provisions of this act and of any rules, regulations, notifications or directions made thereunder, give to the authorised persons any direction in regard to making of payment or the doing or desist from doing any act relating to foreign exchange or foreign security. Background replaced fera foreign exchange regulation act 1974 fera had become incompatible with the proliberalisation policies of the govt. The foreign exchange management act 1999 or in short fema has been introduced as a replacement for earlier foreign exchange regulation act fera. 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. 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. Fema act 1999 upsc 1999 mer 1999 mercury cougar owners manual fema 5th fema fema 356 fema 702 fema guidelines faqs on fema fema 2012b fema p 646 second edition fema publication 232 fema p154 third edition aiag vda fema handbook fema 274 pdf free download fema handbook 2019 fema pandemic plan fema maps by. Section 11 in the foreign exchange management act, 1999. The government of india formulated fema or foreign exchange management act to encourage the external payments and across the border trades in india. It was formulated in the year 1999 while it replaced fera foreign exchange regulation act.
Foreign exchange management act, 1999 bare acts law library. The reserve bank has also vide its notification no fema 15rb2000 dated 3 rd may 2000 notified atm cards and debit. Fema contains 7 chapters divided into 49 sections supreme legislation. 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. An act to consolidate and amend the law relating to. 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. Establishment in india of a branch office or a liaison office or a project office or any other place of business regulations, 2016. Section 2 in the foreign exchange management act, 1999. This was meant to close all the loopholes and drawback of fera and hence major economic reforms were. 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 bill was referred to the standing committee on finance which submitted its report to the house on. The paper deals with the foreign exchange and management act, 1999 comprehensively. Act, 1999 fema to replace the foreign exchange regulation.
The foreign exchange management act, 1999 page 1 bare. Foreign exchange management act, 1999 42 of 1999 and in supersession of. This chapter describes the events that occur after a disaster strikes and provides an introduction to the pa program. Foreign exchange management act, 1999 fema reserve bank of. Due to the shortage of the foreign currency in the country, the foreign exchange regulation act, 1973 fera was enacted. The overall structure of foreign exchange management act, 1999 is covered by legislations, rules and regulations. In a legal library in india and many parts of the englishspeaking world, a bare act is a document that simply codifies a law without annotation or commentary. Broadly, all current account transactions are free. This act seeks to make offences related to foreign exchange civil offences. Foreign exchange management act, 1999 linkedin slideshare. This article provides highlights on foreign exchange management act fema, 1999. It was passed in the winter session of parliament in 1999, replacing the foreign.
Rules regulations notifications orders circulars statutory ordinance statutes. Administration of the public debt act, 1944 18 of 1944. Under the public assistance pa program, fema provides supplemental aid to communities and states1 to help them recover from disasters as quickly as possible. Aug 12, 2017 fema expands to foreign exchange management act, which was promulgated in the year 1999, to repeal and replace the earlier act. A significant change that the fema brought with it, was that. Foreign exchange management act, 1999 fema emerged as a replacement or say an improvement over the old foreign exchange regulation act, 1973 fera. Main features of the foreign exchange management act fema. Foreign exchange management act department for promotion of. Foreign exchange management act, 1999 fema free download as powerpoint presentation. Objective of the act the main objective of fera was conservation and proper utilization of the foreign exchange resources of the country.
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 page 1 bare acts in india statutes and laws free download bare acts and case laws in india have been extensively discussed here, the laws pass by the parliament and its implementation in the courts are commonly discussed here in length. Section 10 in the foreign exchange management act, 1999. Act may be called the foreign exchange management act, 1999. It shall also apply to all branches, offices and agencies outside india owned or controlled by a person resident in india and also to any contravention there under committed outside india by any person to whom this act applies. Jan 27, 20 foreign exchange management act, 1999 1. April 14, 2015 dear all welcome to the refurbished site of the reserve bank of india. Apr 25, 2012 the overall structure of foreign exchange management act, 1999 is covered by legislations, rules and regulations.
The bill was referred to the standing committee on finance which submitted its report to the house on 23 december98 with suggestion and modifications. Section 3 of fema capital account transactions are permitted to the extent specified by rbi by issuing regulations. 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. 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. Bare acts in india statutes and laws free download. The foreign exchange regulation act fera of 1973 in india was replaced on june. On 1st june, 2000, foreign exchange management act fema, 1999 was adopted and effected by the government in place of foreign exchange regulation act fera. Feb 24, 2012 section 36 to 38 directorate of enforcement enforcement of the provisions of the foreign exchange management act prevent leakage of foreign exchange remittances of indians abroad otherwise than through normal banking channels, i.
In this act, unless the context otherwise requires, a adjudicating authority means an officer authorized under subsection 1 of section 16. One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise. Foreign investors, frequently hear the terms fera and fema, when they deal with india. 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 foreign exchange management act fema was an act passed in the winter session of parliament in 1999, which replaced foreign exchange regulation act. All about foreign exchange management fema act, 1999 by. Foreign exchange management act 1999 summary of key points. The act applies to the whole country and to all the branches and agencies of the body corporate operating outside india, whose owner or controller is an indian resident and also any violation committed by the person. Accordingly, payments made by credit cards, atm cards and.
Foreign exchange management act, 1999 foreign travel a. This act may be called the foreign exchange management act, 1999. Instead of negative balance, there was substanital foreign exchange reserve so it was felt necessary to drop out the draconian law of fera. Difference between fera and fema with comparison chart. Fema makes provisions in respect of dealings in foreign exchange. Fema 52000rb dated may 3, 2000, as amended from time to time, the reserve bank makes the following regulations relating to deposits between a person resident in india and a person resident outside india, namely. Section 36 to 38 directorate of enforcement enforcement of the provisions of the foreign exchange management act prevent leakage of foreign exchange remittances of indians abroad otherwise than through normal banking channels, i. However, central government can impose reasonable instructions by issuing rules. Jan 30, 2015 by piyali sengupta, hnlu, raipur editors note. Fathoming fema overview of provisions of foreign exchange management act, 1999 fema and rules and regulations there under rajkumar s adukia, acs, mumbai. The object of fema 1999, effective june1, 2000 to consolidate and.
1381 1300 387 1089 1134 898 731 1438 739 272 547 1436 1167 1479 724 1099 902 244 545 1044 909 1427 707 1420 1063 991 1413 1485 395 1211 218 1104 101 353 544 698 471 285 1324 295 611 545 688 767