Question

Write a note on Foreign Exchange Management Act (FEMA),250words​

Answer 1

Answer:

The main objective behind the Foreign Exchange Management Act (1999) is to consolidate and amend the lawrelating to foreign exchange with theobjective of facilitating external trade and payments. It was also formulated to promote the orderly development and maintenance of foreign exchangemarket in India.

Answer 2

Answer:

The Foreign Exchange Management Act,

1999 (FEMA) is an Act of the Parliament

of India "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". In

was passed in the winter session of

Parliament in 1999, replacing the Foreign

Exchange Regulation Act (FERA). This

act makes offences related to foreign

exchange civil offenses. It extends to the

whole of India, replacing FERA, which

had become incompatible with the

pro-liberalization policies of the

Government of India. It enabled a new

foreign exchange management regime

consistent with the emerging framework

of the World Trade Organization (WTO).

It also paved the way for the introduction

of the Prevention of Money Laundering

Act, 2002, which came into effect from 1

July 2005.