Foreign Exchange Management Act, 1999 (FEMA)

FERA prohibited everything unless specifically permitted, with drastic consequences and a presumption of guilt, while other laws generally permit everything unless specifically prohibited and presume innocence.

The objective of FEMA is to facilitate external trade and payments, promote the orderly development of the foreign exchange market in India, and replace the incompatible Foreign Exchange Regulation Act (FERA) to align with pro-liberalization policies and the World Trade Organization framework.

FEMA introduced a new foreign exchange management regime consistent with the World Trade Organization framework, replaced the incompatible FERA, and led to the introduction of the Prevention of Money Laundering Act, 2002.

<p>The replacement aligned with pro-liberalization policies of the Government of India and enabled a new foreign exchange management regime consistent with the emerging framework of the World Trade Organization (WTO).</p> Signup and view all the answers

<p>Under FERA, everything was prohibited unless specifically permitted, with severe consequences and a presumption of guilt, while other laws generally permit everything unless specifically prohibited and presume innocence.</p> Signup and view all the answers