Explain the objectives and salient feature of foreign exchange management act (fema)
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The
main objectives of Foreign Exchange Management Act are to facilitate external
payment and trade, as well as promote orderly development and maintenance of
foreign exchange market in the country.
Some salient features of FEMA are:
*It gives the Central Government the power to impose restrictions on activities such as making or receiving payments to or from a person outside India along with dealings in foreign security and exchange.
*An Indian resident can execute transactions using foreign security or currency or own an immovable property outside the country if the security, currency or property was owned by him when he was abroad or was inherited by him from a person residing outside India.
*Foreign exchange transactions are classified into two categories – current account transactions and capital accounts.
Some salient features of FEMA are:
*It gives the Central Government the power to impose restrictions on activities such as making or receiving payments to or from a person outside India along with dealings in foreign security and exchange.
*An Indian resident can execute transactions using foreign security or currency or own an immovable property outside the country if the security, currency or property was owned by him when he was abroad or was inherited by him from a person residing outside India.
*Foreign exchange transactions are classified into two categories – current account transactions and capital accounts.
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