Discuss the main provisions of fema.
Answers
Answered by
0
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.
Provisions of FEMA are grouped under four heads. Important provisions under each of the four heads, having a bearing on promoting economic development through foreign investment with enabling provisions to ensure the curtailing of inflationary trends from such transactions, are outlined below.
1. Regulation for Current Account Transaction
2. Regulations Relating to Capital Account Transactions
3. Regulations relating to export of goods and services
Similar questions