330:
changes and innovations, which can either be beneficial to a country or expose them to greater risks. The management of foreign exchange market becomes necessary in order to mitigate and avoid the risks. Central banks would work towards an orderly functioning of the transactions which can also develop their foreign exchange market. Foreign
Exchange Market Whether under FERA or FEMA’s control, the need for the management of foreign exchange is important. It is necessary to keep adequate amount of foreign exchange.
42:
571:
505:(i)Of any article, not being an article given to a person* as a gift for his personal use, if the market value, in India, of such article, on the date of such gift is not more than such sum as may be specified from time to time by the Central Government by rules made by it in this behalf. (This sum has been specified as ₹25,000/- currently);
514:
Explanation 1 – A donation, delivery or transfer or any article, currency or foreign security referred to in this clause by any person who has received it form any foreign source, either directly or through one or more persons, shall also be deemed to be foreign contribution with the meaning of this
442:
FCRA, 2010 has been enacted by the
Parliament to consolidate the law to regulate the acceptance and utilization of foreign contribution or foreign hospitality by certain individuals or associations or companies and to prohibit acceptance and utilization of foreign contribution or foreign hospitality
333:
FEMA served to make transactions for external trade and easier – transactions involving current account for external trade no longer required RBI’s permission. The deals in
Foreign Exchange were to be ‘managed’ instead of ‘regulated’. The switch to FEMA shows the change on the part of the government
329:
The buying and selling of foreign currency and other debt instruments by businesses, individuals and governments happens in the foreign exchange market. Apart from being very competitive, this market is also the largest and most liquid market in the world as well as in India. It constantly undergoes
314:
FERA did not succeed in restricting activities such as the expansion of
Multinational Corporations. The concessions made to FERA in 1991–1993 showed that FERA was on the verge of becoming redundant. After the amendment of FERA in 1993, it was decided that the act would become the FEMA. This was done
297:
FERA was introduced at a time when foreign exchange (Forex) reserves of the country were low, Forex being a scarce commodity. FERA therefore proceeded on the presumption that all foreign exchange earned by Indian residents rightfully belonged to the
Government of India and had to be collected and
305:
Coca-Cola was India's leading soft drink until 1977 when it left India after a new government ordered the company to dilute its stake in its Indian unit as required by the
Foreign Exchange Regulation Act (FERA). In 1993, the company (along with PepsiCo) returned after the introduction of India's
518:
Explanation 2 ‒ The interest accrued on the foreign contribution deposited in any bank referred to in sub-section (1) of
Section 17 or any other income derived from the foreign contribution or interest thereon shall also be deemed to be foreign contribution within the meaning of this clause.
175:"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". It was passed on 29 December 1999 in parliament, replacing the
351:
a transaction which alters the assets or liabilities, including contingent liabilities, outside India of persons resident in India or assets or liabilities in India of persons resident outside India, and includes transactions referred to in sub-section (3) of section 6;
527:
siness, trade or commerce whether within India or outside India or any contribution received from an agent or a foreign source towards such fee or cost shall be excluded from the definition of foreign contribution within the meaning of this clause.
522:
Explanation 3 ‒ Any amount received, by a person from any foreign source outside India, by way of fee (including fees charged by an educational institution in India from foreign student) or towards cost in lieu of goods or services rendered by
69:
An Act to consolidate and amend the law relating to foreign exchange with the objective of facilitating the external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India.
511:(iii)Of any security as defined in clause (h) of section 2 of the securities Contracts(Regulation) Act, 1956 and includes any foreign security as defined in clause (o) of Section 2 of the Foreign Exchange Management Act, 1999.
343:
Under FEMA, the general principle is that all current account transactions are permitted unless expressly prohibited and all
Capital account transactions are prohibited unless expressly permitted. (see Sections 5 and 6 of
355:
It generally refers to
Capital inflows like Equities, Grants and Debt. Inflows within the country are called as 'Foreign Direct Investment' (FDI). Capital debt is termed – External Commercial Borrowings (ECB).
234:
FEMA is a regulatory mechanism that enables the
Reserve Bank of India to pass regulations and the Central Government to pass rules relating to foreign exchange in tune with the Foreign Trade policy of India.
365:
Current Account transaction are defined as transactions other than capital account transactions. Mainly include transactions pertaining to individual remittances, trade, student remittances etc.
315:
in order to relax the controls on foreign exchange in India. This led on to invention of beliefs among stakeholders that FEMA and FERA co-exist in present Indian scenario.
1019:
595:
1014:
422:
Foreign Exchange Management (Establishment in India of a branch office or a liaison office or a project office or any other place of business) Regulations, 2016
850:
895:
1054:
870:
830:
362:
Any corporate entity receiving FDI or making an outbound investment has to file an annual FEMA return called as Foreign Liabilities and Assets (FLA).
17:
756:"The Foreign Exchange Regulation Acts (FERA) | Government Acts (Alphabetically) | Central Govt. Acts (in alphabetical order) | www.karmayog.org"
755:
1044:
924:
631:
437:
810:
502:
As per Section 2(1)(h) of FCRA, 2010, "foreign contribution" means the donation, delivery or transfer made by any foreign source, ─
200:
602:
1064:
461:
Associate Branches or subsidiaries, outside India, of companies or bodies corporate, registered or incorporated in India
223:. Hence the tenor and tone of the Act was very drastic. It required imprisonment even for minor offences. Under FERA,
671:
619:
389:
Foreign Exchange Management (Establishment in India of branch or office or other place of business) regulations, 2000
1039:
1069:
1049:
216:
176:
143:
413:
Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2017
544:(iv) ) A company registered under section 25 of the Companies Act, 1956 (now Section 8 of Companies Act, 2013).
443:
for any activities detrimental to national interest and for matters connected therewith or incidental thereto.
398:
Foreign Exchange Management (Realizations, repatriation and surrender of Foreign Exchange) regulations, 2000
1034:
1059:
627:
561:
386:
Foreign Exchange Management (Acquisition and transfer of immovable property in India) regulations, 2018
287:
and the transactions which had an indirect impact on the foreign exchange and the import and export of
383:
Foreign Exchange Management (Foreign currency accounts by a person resident in India)Regulations, 2000
1009:
323:
763:
687:
196:
716:
465:
935:
960:
623:
180:
82:
785:
657:
299:
401:
Foreign Exchange Management (Possession and Retention of Foreign Currency) Regulations, 2000
187:, replacing FERA, which had become incompatible with the pro-liberalization policies of the
319:
8:
380:
Foreign Exchange Management (Transfer or Issue of any Foreign Security) regulations, 2004
188:
172:
92:
49:
377:
Foreign Exchange Management (Permissible Capital Account Transactions) Regulations, 2000
835:
279:
in 1973 that imposed strict regulations on certain kinds of payments, the dealings in
667:
663:
168:
291:. The bill was formulated with the aim of regulating payments and foreign exchange.
280:
192:
466:
Acts/rules/guidelines which regulate the flow of foreign contribution to India
1028:
982:
392:
Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2016
395:
Foreign Exchange Management (Export of Goods and Services) regulations, 2015
554:
480:
And other notification / orders etc., issued there under from time to time.
855:
815:
451:
As per Section 1(2) of FCRA, 2010, the provisions of the act applies to:
302:(RBI). FERA primarily prohibited all transactions not permitted by RBI.
688:"Foreign Exchange Regulation Act 1999 (FERA) – General Knowledge Today"
575:
322:
and replaced by the Foreign Exchange Management Act, which liberalised
284:
60:
730:
407:
Foreign Exchange Management (Borrowing and Lending) Regulations, 2018
374:
Foreign Exchange Management (Current Account Transactions) Rule, 2000
570:
416:
Foreign Exchange Management (Remittance of Assets) Regulations, 2016
410:
Foreign Exchange Management (Cross Border Merger) Regulations, 2018
288:
41:
195:
management regime consistent with the emerging framework of the
359:
Equity outflows are termed as 'Foreign outbound investment' .
259:
136:
431:
225:
a person was presumed guilty unless he proved himself innocent
896:"Main Features of the Foreign Exchange Management Act (FEMA)"
470:
The flow of foreign contribution to India is regulated under
404:
Foreign Exchange ( Adjudication Procedure and Appeals) rules,
276:
184:
179:(FERA). This act makes offences related to foreign exchange
493:
The Foreign Contribution (Regulation) Amendment Act, 2020
199:(WTO). It also paved the way for the introduction of the
419:
Foreign Exchange Management (Deposit) Regulations, 2016
294:
FERA came into force with effect from January 1, 1974.
229:
a person is presumed innocent until he is proven guilty
221:
everything was prohibited unless specifically permitted
27:
Act of the Parliament of India, replaces Act 46 of 1973
213:
everything is permitted unless specifically prohibited
1020:
NRIs can now open joint accounts with resident Indian
559:
961:"FEMA Consultancy and Compliance – By Team Entrecap"
900:
YourArticleLibrary.com: The Next Generation Library
243:
1026:
508:(ii)Of any currency, whether Indian or foreign;
497:
368:
318:FERA was repealed in 1998 by the government of
483:FCRA, 1976 repealed after coming of FCRA, 2010
531:* In terms of FCRA, 2010 "person" includes ‒
477:Foreign Contribution (Regulation) Rules, 2011
474:Foreign Contribution (Regulation) Act, 2010,
925:"The Foreign Exchange Management Act, 1999"
731:"The Foreign Exchange Regulation Act, 1973"
655:
596:"THE FOREIGN EXCHANGE MANAGEMENT ACT, 1999"
438:Foreign Contribution (Regulation) Act, 2010
432:Foreign Contribution (regulation) Act, 2010
525:ch person in the ordinary course of his bu
203:, which came into effect on 1 July 2005.
612:
1055:Economic history of India (1947–present)
337:
326:and restrictions on foreign investment.
201:Prevention of Money Laundering Act, 2002
14:
1027:
426:
919:
917:
711:
709:
219:(FERA) of 1973 (predecessor to FEMA)
161:Foreign Exchange Management Act, 1999
35:Foreign Exchange Management Act, 2000
1045:Acts of the Parliament of India 1999
458:Citizens of India outside India; and
349:“Capital account transaction” means
309:
24:
1010:Reserve Bank of India FEMA website
914:
706:
25:
1081:
1003:
717:"Reserve Bank of India – Reports"
569:
446:
40:
975:
953:
888:
863:
843:
823:
630:, Govt of India. Archived from
269:Foreign Exchange Regulation Act
251:Foreign Exchange Regulation Act
244:Foreign Exchange Regulation Act
217:Foreign Exchange Regulation Act
177:Foreign Exchange Regulation Act
144:Foreign Exchange Regulation Act
18:Foreign Exchange Regulation Act
1015:FEMA from the Finance Ministry
803:
778:
748:
723:
680:
649:
588:
538:(ii) A Hindu undivided family;
206:
13:
1:
582:
498:What is foreign contribution?
487:
334:in terms of for the capital.
183:. It extends to the whole of
369:Regulations/Rules under FEMA
275:) was legislation passed in
7:
548:
227:, whereas under other laws
10:
1086:
1065:Financial history of India
875:timesofindia-economictimes
851:"FERA: Businessman's POTA"
435:
238:
811:"FERA: The end of an era"
324:foreign exchange controls
255:
250:
149:
142:
135:
127:
122:
114:
106:
98:
88:
78:
55:
48:
39:
34:
871:"The Crucial difference"
831:"The Crucial difference"
211:Unlike other laws where
197:World Trade Organization
1040:Vajpayee administration
306:Liberalization policy.
1070:1999 in Indian economy
1050:Foreign trade of India
541:(iii) An association;
338:Fundamental principle
300:Reserve Bank of India
790:www.moneycontrol.com
659:Business Environment
656:AC Fernando (2011).
608:on 10 February 2016.
320:Atal Bihari Vajpayee
1035:Indian business law
694:. 14 September 2011
628:Ministry of Finance
427:Related legislation
298:surrendered to the
191:. It enabled a new
189:Government of India
173:Parliament of India
123:Legislative history
93:Parliament of India
50:Parliament of India
1060:1999 in Indian law
932:legislative.gov.in
839:, 27 November 2005
836:The Economic Times
535:(i) An individual;
83:Act No. 42 of 1999
987:fcraonline.nic.in
963:. 7 December 2020
664:Pearson Education
265:
264:
157:
156:
16:(Redirected from
1077:
998:
997:
995:
993:
979:
973:
972:
970:
968:
957:
951:
950:
948:
946:
941:on 15 March 2023
940:
934:. Archived from
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921:
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886:
885:
883:
881:
867:
861:
860:
859:, 18 August 2003
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821:
820:
819:, 5 October 2013
807:
801:
800:
798:
796:
782:
776:
775:
773:
771:
762:. Archived from
760:www.karmayog.org
752:
746:
745:
743:
741:
735:indiankanoon.org
727:
721:
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699:
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642:
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616:
610:
609:
607:
601:. Archived from
600:
592:
574:
573:
565:
310:Switch from FERA
281:foreign exchange
248:
247:
193:foreign exchange
131:29 December 1999
107:Assented to
44:
32:
31:
21:
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739:
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729:
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715:
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707:
697:
695:
686:
685:
681:
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666:. p. 427.
654:
650:
640:
638:
637:on 23 June 2012
634:
624:Dept of Revenue
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209:
89:Enacted by
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65:
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28:
23:
22:
15:
12:
11:
5:
1083:
1073:
1072:
1067:
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1057:
1052:
1047:
1042:
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1023:
1022:
1017:
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1005:
1004:External links
1002:
1000:
999:
974:
952:
913:
887:
862:
842:
822:
802:
777:
766:on 6 July 2018
747:
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692:www.gktoday.in
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455:Whole of India
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181:civil offenses
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447:Applicability
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990:. Retrieved
986:
977:
965:. Retrieved
955:
943:. Retrieved
936:the original
931:
904:. Retrieved
902:. 7 May 2014
899:
890:
878:. Retrieved
874:
865:
854:
845:
834:
825:
814:
805:
793:. Retrieved
789:
780:
768:. Retrieved
764:the original
759:
750:
738:. Retrieved
734:
725:
696:. Retrieved
691:
682:
658:
651:
639:. Retrieved
632:the original
620:"FEMA, 1999"
614:
603:the original
590:
555:Law of India
530:
524:
521:
517:
513:
510:
507:
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469:
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283:(forex) and
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268:
266:
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220:
215:, under the
212:
210:
164:
160:
158:
150:
59:
29:
856:India Today
816:India Today
641:9 September
207:Description
118:1 June 2000
102:1 June 2000
1029:Categories
583:References
488:Amendments
285:securities
128:Introduced
61:Long title
115:Commenced
992:20 April
549:See also
515:clause.
289:currency
260:Repealed
167:) is an
153:In force
79:Citation
945:23 July
906:3 April
880:1 April
795:3 April
770:1 April
740:1 April
698:1 April
257:Status:
239:History
171:of the
151:Status:
137:Repeals
99:Enacted
983:"FCRA"
967:5 July
786:"FERA"
670:
562:Portal
939:(PDF)
928:(PDF)
635:(PDF)
606:(PDF)
599:(PDF)
344:FEMA)
277:India
185:India
994:2017
969:2022
947:2024
908:2016
882:2016
797:2016
772:2016
742:2016
700:2016
668:ISBN
643:2012
273:FERA
267:The
165:FEMA
159:The
576:Law
169:Act
1031::
985:.
930:.
916:^
898:.
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853:,
833:,
813:,
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758:.
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774:.
744:.
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702:.
676:.
645:.
564::
271:(
163:(
20:)
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.
