This law’s main objective is to increase the flow of foreign exchange in India. Now , under this law , you can bring foreign currency in India without any legal barrier . According to section 3 of FEMA 2000 ,” only authorized person under the govt. terms can deal in foreign exchange in India .
What is Foreign Exchange Management Act and its objectives?
The primary objective of FEMA act was “facilitating external trade and payments and promoting the orderly development and maintenance of foreign exchange market in India”. FEMA was enacted by the Parliament of India in the winter session of 1999 to replace the Foreign Exchange Regulation Act (FERA) of 1973.
What are the provisions of Foreign Exchange Management Act 2000?
Residents of India will be permitted to carry out transactions in foreign exchange, foreign security or to own or hold immovable property abroad if the currency, security or property was owned or acquired when he/she was living outside India, or when it was inherited by him/her from someone living outside India.
What are the provisions of Foreign Exchange Management Act?
Provisions of Foreign Exchange Management Act (FEMA) provides free transaction on current account subject to the guidelines by the RBI. Enforcement of Foreign Exchange Management Act (FEMA) is entrusted to a separate directorate, which undertakes investigations on contraventions of the Act.
What are the main objective of FEMA?
The main objective of FEMA is to facilitate external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India. FEMA deals with provisions relating to procedures, formalities, dealings, etc. of foreign exchange transactions in India.
What is the definition of foreign exchange under Foreign Exchange Management Act 1999?
o the taking out of India to a place outside India any goods, o provision of services from India to any person outside India; • “foreign currency” means any currency other than Indian currency; • “foreign exchange” means foreign currency and includes,- o deposits, credits and balances payable in any foreign currency.
What is meant by foreign exchange?
Foreign exchange, or forex, is the conversion of one country’s currency into another. In a free economy, a country’s currency is valued according to the laws of supply and demand. In other words, a currency’s value can be pegged to another country’s currency, such as the U.S. dollar, or even to a basket of currencies.
What are the main objects of the Foreign Exchange Management Act 1999?
FOREIGN EXCHANGE MANAGEMENT ACT, 1999 (42 of 1999)
The object of the Act is to consolidate and amend the law relating to foreign exchange with objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India.
What are the provisions in respect of possession and retention of foreign currency under FEMA?
Following are the limits for possession or retention of foreign currency or foreign coins, namely :- • Possession without limit of foreign currency and coins by an authorised person within the scope of his authority ; • possession without limit of foreign coins by any person; • retention by a person resident in India …
What is import under Foreign Exchange Management Act 1999?
The term ‘import’ means bringing into India any goods or services- section (p) of FEMA. Governing Regulation. Import of Goods and Services into India is being allowed in terms of Section 5 of the Foreign Exchange Management Act 1999 (42 of 1999), read with Notification No.
How does foreign exchange regulation act work critically analyze the statement?
FERA – the four-letter acronym for Foreign Exchange Regulation Act is a legislation that came into existence in 1973 with the purpose to regulate certain dealings in foreign exchange, impose restrictions on certain kinds of payments and to monitor the transactions impinging the foreign exchange and the import and …
Who investigates the contravention of provisions of FEMA 1999?
Ans. When a person is made aware of the contravention of the provisions of FEMA, 1999 by the Reserve Bank or any other statutory authority or the auditors or by any other means, she/he may apply for compounding. One can also make an application for compounding, suo mo-to, on becoming aware of the contravention. Q.
Which among the following is not an objective of FEMA?
FEMA MCQ Question 5 Detailed Solution
Removal of restrictions on the drawl of foreign exchange for the purpose of capital account transactions is not an objective of FEMA.