CA Foundation Exam > CA Foundation Questions > Government of India has replaced FERA by:a)Th...
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Government of India has replaced FERA by:
- a)The competition Act
- b)FEBMA
- c)MRTP Act
- d)FEMA
Correct answer is 'D'. Can you explain this answer?
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Government of India has replaced FERA by:a)The competition Actb)FEBMAc...
In the budget of 1997-98, the government had proposed to replace FERA-1973, by FEMA (Foreign Exchange management act). FEMA was proposed by the both house of the parliament in Dec. 1999. After the approval of president, FEMA 1999 has come into force w.e.f. June, 2000. Under the FEMA, provisions related to foreign exchange have been modified and liberalized so as to simplify foreign trade. Government hopes that the FEMA will make favourable development in the foreign money market.
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Government of India has replaced FERA by:a)The competition Actb)FEBMAc...
Government of India replaced FERA by FEMA.
FEMA stands for Foreign Exchange Management Act. It came into force on June 1, 2000, and replaced the Foreign Exchange Regulation Act (FERA) which was enacted in 1973. FERA was introduced to regulate and control foreign exchange transactions in India, particularly those related to payments made to and by foreigners.
The main objective of FEMA is to facilitate external trade and payments and to promote orderly development and maintenance of foreign exchange market in India. It is a more liberal and contemporary law that has been formulated to meet the needs of the changing economic scenario in the country.
Key features of FEMA are:
1. Liberalization: Under FEMA, most of the restrictions on foreign exchange transactions have been removed. This has made it easier for businesses and individuals to carry out foreign exchange transactions.
2. Simplification: FEMA has simplified the procedures for foreign exchange transactions. It has also reduced the paperwork and documentation required for such transactions.
3. Enforcement: FEMA has a strict enforcement mechanism to ensure compliance with its provisions. It provides for penalties and fines in case of non-compliance.
4. Integration: FEMA has integrated the foreign exchange regulations with other laws such as the Companies Act, Income Tax Act, and Customs Act. This has made it easier for businesses to comply with the regulations.
In conclusion, FEMA has replaced FERA to provide a more liberal and contemporary framework for foreign exchange transactions in India. It has simplified the procedures and reduced the restrictions on such transactions while providing a strict enforcement mechanism to ensure compliance with its provisions.
FEMA stands for Foreign Exchange Management Act. It came into force on June 1, 2000, and replaced the Foreign Exchange Regulation Act (FERA) which was enacted in 1973. FERA was introduced to regulate and control foreign exchange transactions in India, particularly those related to payments made to and by foreigners.
The main objective of FEMA is to facilitate external trade and payments and to promote orderly development and maintenance of foreign exchange market in India. It is a more liberal and contemporary law that has been formulated to meet the needs of the changing economic scenario in the country.
Key features of FEMA are:
1. Liberalization: Under FEMA, most of the restrictions on foreign exchange transactions have been removed. This has made it easier for businesses and individuals to carry out foreign exchange transactions.
2. Simplification: FEMA has simplified the procedures for foreign exchange transactions. It has also reduced the paperwork and documentation required for such transactions.
3. Enforcement: FEMA has a strict enforcement mechanism to ensure compliance with its provisions. It provides for penalties and fines in case of non-compliance.
4. Integration: FEMA has integrated the foreign exchange regulations with other laws such as the Companies Act, Income Tax Act, and Customs Act. This has made it easier for businesses to comply with the regulations.
In conclusion, FEMA has replaced FERA to provide a more liberal and contemporary framework for foreign exchange transactions in India. It has simplified the procedures and reduced the restrictions on such transactions while providing a strict enforcement mechanism to ensure compliance with its provisions.
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Government of India has replaced FERA by:a)The competition Actb)FEBMAc)MRTP Actd)FEMACorrect answer is 'D'. Can you explain this answer?
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Government of India has replaced FERA by:a)The competition Actb)FEBMAc)MRTP Actd)FEMACorrect answer is 'D'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Government of India has replaced FERA by:a)The competition Actb)FEBMAc)MRTP Actd)FEMACorrect answer is 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Government of India has replaced FERA by:a)The competition Actb)FEBMAc)MRTP Actd)FEMACorrect answer is 'D'. Can you explain this answer?.
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