FEMA Act: Foreign Exchange Management Act – GetLegal India

The Indian Parliament passed the Foreign Exchange Management Act (FEMA Act) in 1999 with the goal of “consolidating and amending the law relating to foreign exchange to facilitate external country trade and payments and promote the orderly development and maintenance of the foreign exchange market in India.” It superseded the Foreign Exchange Regulation Act, adopted by parliament on December 29, 1999. (FERA). Under this statute, violations of foreign exchange now get classified as civil offences. It covers the whole country, replacing FERA, which had become incompatible with the Indian government’s pro-liberalization objectives.

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