Highlights of FEMA . Application of FEMA can be seen from 2 angles viz .

current account transactions and capital account transactions. Capital account transactions relate to the movement of capital eg. Transactions in property and investments , lending and borrowing money. . Transactions which do fall in the capital a/c transactions are current a/c which are permitted freely subject to few restrictions. . Certain current a/c transactions will require RBI approval if they exceed a certain ceiling. . A few current a/c transactions need permission of appropriate Govt of India authority irrespective of the amount. . There are 7 types of current a/c transactions which are totally prohibited and no transactions can therefore be undertaken relating to the .. These include transactions relating to lotteries , banned magazines and a few others. . FEMA gives full freedom to a person resident in India who was earlier resident outside India to hold or transfer any foreign security security or immovable property situated outside India when he was a resident there. . Similar freedom is also given to a resident who inherits such security or immovable property from a person resident outside India . .A person resident outside India can hold shares , securities and properties acquired by him while he / she was a resident there . . Similar freedom is given if eh inherits similar properties from a person resident in India . The exchange drawn can be used for another purpose other than for which it is drawn provided the other purpose is permitted. . NO RBI permission will be required for persons visiting foreign countries for business purposes or for attending seminars and conferences for foreign exchange upto $ 25000 irrespective of the period of stay , and basic travel quota has been increased to $ 5000 per calendar yr . .Indian companies engaged in certain specified sectors can acquire shares of foreign exchange companies engaged in similar transactions by share swap or exchange through issue of ADRs / GDRs upto certain specified limits. .FEMA describes a redressal machinery for total justice and fairness to the implicated.