Question

Which act of Parliament in India regulates the flow of foreign exchange?
1. Foreign Exchange Management Act
2. Foreign Exchange Monitoring Act
3. Foreign Exchange Regulatory Act
4. Foreign Exchange Act of India

Answer 1

foreign exchange management act is the right answer

Answer 2

Foreign Exchange Management Act of Parliament in India regulates the flow of foreign exchange .

1 )he preamble to FEMA lays down the purpose of the Act is to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India.

Rationale for strict regulations under FERA 1973.

2) It also sought to control certain aspects of the conduct of business outside the country by Indian companies and in India by foreign companies.

3)The objectives of FEMA are to facilitate external trade and payments and to promote the orderly development and maintenance of foreign exchange market.

Hope its useful ..!!