FOREIGN EXCHANGE MANAGEMENT ACT -1999 & INFORMATION TECHNOLOGY ACT-2000

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FOREIGN EXCHANGE MANAGEMENT ACT -1999

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5/25/12

INTRODUCTION TO FERA AND FEMA

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In the Indian economy, major changes were introduced in 1991, so as to increase the inflow of foreign capital and investment in order to promote the export business.

The Foreign Exchange Management Act (1999) or in short FEMA has been introduced as a replacement for earlier Foreign Exchange Regulation Act (FERA),1973.

FEMA came into force on the 1st day of June, 2000. The act was passed by lok sabha on 2nd december,1999..

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OBJECTIVES

The act aims to consolidate and amend the law relating to foreign exchange with objective of facilitating external trade. In simple:

1.

To facilitate external trade and payments.

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