PPT - Foreign Exchange Management Act | Business Law - B Com PDF Download

 Page 2


? Statutory Basis for Exchange Control
? The Foreign Exchange Regulation Act, 1973
(FERA 1973), as amended by the Foreign
Exchange Management (Amendment) Act,
1999, forms the statutory basis for Exchange
Control in India.
Page 3


? Statutory Basis for Exchange Control
? The Foreign Exchange Regulation Act, 1973
(FERA 1973), as amended by the Foreign
Exchange Management (Amendment) Act,
1999, forms the statutory basis for Exchange
Control in India.
? The Foreign Exchange Management Act (1999) or
in short FEMA has been introduced as a
replacement for earlier Foreign Exchange
Regulation Act (FERA). FEMA came into force on
the 1st day of June, 2000.
? FEMA
? consolidate and amend the law relating to foreign
exchange
? facilitating external trade and payments
? promoting the orderly development and maintenance
of foreign exchange market in India
? 49 sections in the Act
Page 4


? Statutory Basis for Exchange Control
? The Foreign Exchange Regulation Act, 1973
(FERA 1973), as amended by the Foreign
Exchange Management (Amendment) Act,
1999, forms the statutory basis for Exchange
Control in India.
? The Foreign Exchange Management Act (1999) or
in short FEMA has been introduced as a
replacement for earlier Foreign Exchange
Regulation Act (FERA). FEMA came into force on
the 1st day of June, 2000.
? FEMA
? consolidate and amend the law relating to foreign
exchange
? facilitating external trade and payments
? promoting the orderly development and maintenance
of foreign exchange market in India
? 49 sections in the Act
? Authorized Person:
? Authorized under the Act to deal in foreign exchange
? Capital account transaction:
? Alters the assets or liability
? Currency:
? Currency notes, Money order, cheque, drafts etc…
? Currency Notes:
? Coin and bank notes
? Currency Account Transaction:
? Transactions other than capital account transactions
? Indian Currency:
? Indian rupees
Page 5


? Statutory Basis for Exchange Control
? The Foreign Exchange Regulation Act, 1973
(FERA 1973), as amended by the Foreign
Exchange Management (Amendment) Act,
1999, forms the statutory basis for Exchange
Control in India.
? The Foreign Exchange Management Act (1999) or
in short FEMA has been introduced as a
replacement for earlier Foreign Exchange
Regulation Act (FERA). FEMA came into force on
the 1st day of June, 2000.
? FEMA
? consolidate and amend the law relating to foreign
exchange
? facilitating external trade and payments
? promoting the orderly development and maintenance
of foreign exchange market in India
? 49 sections in the Act
? Authorized Person:
? Authorized under the Act to deal in foreign exchange
? Capital account transaction:
? Alters the assets or liability
? Currency:
? Currency notes, Money order, cheque, drafts etc…
? Currency Notes:
? Coin and bank notes
? Currency Account Transaction:
? Transactions other than capital account transactions
? Indian Currency:
? Indian rupees
? Export:
? Goods and services from India to outside
? Foreign Currency:
? Other than Indian currency
? Foreign Exchange:
? Means foreign currency
? Foreign Security:
? Security expressed in foreign currency
? Import:
? Goods and services from outside to India
? Security:
? Shares, Stock etc as defined in the Public Debt Act of 
1994