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Questions and Answers
What did the Foreign Exchange Regulation Act (FERA) of 1973 (predecessor to FEMA) imply about permissions and prohibitions?
What did the Foreign Exchange Regulation Act (FERA) of 1973 (predecessor to FEMA) imply about permissions and prohibitions?
Everything was prohibited unless specifically permitted
What was the objective of the Foreign Exchange Management Act, 1999 (FEMA)?
What was the objective of the Foreign Exchange Management Act, 1999 (FEMA)?
Facilitating external trade and payments and promoting the orderly development and maintenance of foreign exchange market in India
When was the Foreign Exchange Management Act, 1999 (FEMA) passed in the Indian Parliament?
When was the Foreign Exchange Management Act, 1999 (FEMA) passed in the Indian Parliament?
29 December 1999
What Act did the Foreign Exchange Management Act, 1999 (FEMA) pave the way for?
What Act did the Foreign Exchange Management Act, 1999 (FEMA) pave the way for?
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Under which Act was a person presumed guilty unless he proved himself innocent?
Under which Act was a person presumed guilty unless he proved himself innocent?
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Study Notes
Foreign Exchange Regulation Act (FERA) of 1973
- FERA imposed strict permissions and prohibitions on foreign exchange transactions.
- Required individuals and businesses to obtain government approval for foreign currency dealings.
- Created a framework that regulated foreign exchange based on stringent control measures.
Foreign Exchange Management Act (FEMA)
- Aimed to facilitate external trade and payments while promoting the orderly development of the foreign exchange market in India.
- Shifted focus from regulation and control to management and liberalization of foreign exchange.
- Encouraged foreign investment in India and allowed easier access to foreign currency.
Legislative Timeline
- FEMA was passed in the Indian Parliament in 1999, marking a significant reform in foreign exchange law.
Paving the Way
- FEMA paved the way for a more flexible framework compared to FERA, establishing an environment conducive to global trade and investment.
Presumption of Guilt
- Under FERA, individuals were presumed guilty until proven innocent, reflecting a more punitive approach to foreign exchange violations.
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Description
Test your knowledge about the Foreign Exchange Management Act (FEMA) of India, its objectives, and the changes it brought to the regulation of foreign exchange. Learn about its significance and impact on external trade and payments.
