Why was FERA Act changed to FEMA act?

The Foreign Exchange Regulation Act (FERA) was passed in 1973; the main purpose of which was to ensure the use of foreign exchange. The FERA was creating obstacles in the development of the country so government replaced it by FEMA in 1999.

How is foreign exchange management Act FEMA different from the Foreign Exchange Regulation Act Fera?

FERA was enacted to regulate the foreign exchange and payments in India. Its main objective was to conserve the forex transactions. FEMA was enacted to remove the stringent regulations on foreign exchange and promote an orderly management of foreign exchange and payments.

What is Fera explain?

The Foreign Exchange Regulation Act (FERA) was legislation passed in India in 1973 that imposed strict regulations on certain kinds of payments, the dealings in foreign exchange (forex) and securities and the transactions which had an indirect impact on the foreign exchange and the import and export of currency.

What are the similarities between FERA and FEMA?

The similarities between FERA and FEMA are as follows: The Reserve Bank of India and central government would continue to be the regulatory bodies. Presumption of extra territorial jurisdiction as envisaged in section (1) of FERA has been retained.

Why FEMA replaced FERA discuss the main features and objectives of the Foreign Exchange Management Act FEMA 1999?

The Government of India formulated FEMA or Foreign Exchange Management Act to encourage external payments and across the border trades in India. It was formulated in the year 1999 while it replaced FERA (Foreign Exchange Regulation Act). It was primarily formulated to de-regularize and have a liberal Indian economy.

What was the need of FEMA when Fera was there?

Objectives of FEMA The main objective for which FEMA was introduced in India was to facilitate external trade and payments. In addition to this, FEMA was also formulated to assist orderly development and maintenance of the Indian forex market.

Which Act governs the foreign exchange management in India?

FEMA
The Central Government of India formulated an act to encourage external payments and across the border trades in India known as the Foreign Exchange Management Act. FEMA (Foreign Exchange Management Act) was introduced in the year 1999 to replace an earlier act FERA (Foreign Exchange Regulation Act).

What are the functions of FERA?

FERA – the four-letter acronym for Foreign Exchange Regulation Act is a codification that was introduced in 1973 with the purpose to rule the dealings in foreign exchange, enforce restrictions on specific payments and to keep an eye on the transactions impinging the foreign exchange and the import and export of …

How is FEMA improvement over Fera?

Foreign Exchange Management Act, 1999 (FEMA) emerged as a replacement or say an improvement over the old Foreign Exchange Regulation Act, 1973 (FERA). As their name specifies, FERA lays emphasis on the regulation of currencies, whereas the FEMA manages foreign exchange, i.e. forex. …

Why was FERA introduced?

What is Fera and Mrtp?

Monopolies and Restrictive Trade Practices Act (MRTP), 1969. Foreign Exchange Regulation Act (FERA), 1973. Foreign Exchange Management Act (FEMA), 1999. Case.

What are the salient features of FERA?

(1) This Act may be called the Foreign Exchange Regulation Act, 1973. (2) It extends to the whole of India. (3) It applies also to all citizens of India outside India and to branches and agencies outside India of companies or bodies corporate, registered or incorporated in India.

What is Fera and FEMA in India?

Foreign Exchange Regulation Act (FERA) and Foreign Exchange Management Act ( FEMA) are statutory requirements, which were enacted by the parliament of India to conserve India’s foreign exchange reserves. What is FERA?

What is ferfera and FEMA?

FERA and FEMA are acts of parliament that were formulated and enacted to facilitate foreign exchange market in India.

What is Fera and what is its purpose?

FERA is an act which is enacted to regulate payments and foreign exchange in India, is FERA. FEMA an act initiated to facilitate external trade and payments and to promote orderly management of the forex market in the country.

What is FERA (foreign exchange regulations Act)?

FERA stands for Foreign Exchange Regulations Act which was passed in 1973. It imposed severe restrictions on the types of payments and foreign exchange and securities transactions, as well as on transactions that impacted the exchange, as well as the indirect import and export of currency. The goal behind FERA was to regulate payments and exchange.