- What are the features of FEMA Act?
- What are the objectives of FEMA?
- Who is an Authorised person under FEMA?
- Is FEMA a civil law?
- What are FEMA guidelines?
- What is FEMA limit?
- Under which circumstances FEMA is applied?
- Who regulates foreign exchange?
- What is FEMA violation?
- What are the features of FEMA?
- What is the penalty for violation of FEMA Act?
- Who is an Authorized Person?
- What are the powers of Ed?
- What is Ed function?
- Why was FEMA needed?
- What is APR filing?
- Is FEMA still in force in India?
- What is difference between FERA and FEMA?
What are the features of FEMA Act?
Main Features of Foreign Exchange Management Act, 1999It gives powers to the Central Government to regulate the flow of payments to and from a person situated outside the country.All financial transactions concerning foreign securities or exchange cannot be carried out without the approval of FEMA.More items…•.
What are the objectives of FEMA?
The main objective of FEMA is to facilitate external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India. FEMA deals with provisions relating to procedures, formalities, dealings, etc. of foreign exchange transactions in India.
Who is an Authorised person under FEMA?
Section 2(c) of Foreign Exchange Management Act or FEMA states that ‘authorised person’ means an authorised dealer, money changer, off-shore banking unit or any other person authorised under section 10 (1) to deal in foreign exchange and foreign securities.
Is FEMA a civil law?
Compounding of offense under FEMA is a mechanism where the guilty person is allowed to give monetary payment for committing contraventions under section 13. Therefore, the contraventions under FEMA are compoundable and civil in nature.
What are FEMA guidelines?
Introduction. Foreign Exchange Management Act or in short (FEMA) is an act that provides guidelines for the free flow of foreign exchange in India. It has brought a new management regime of foreign exchange consistent with the emerging frame work of the World Trade Organisation (WTO).
What is FEMA limit?
Under the LRS, Indian citizens can transfer money to bank accounts abroad without needing to get special permission. However, money can only be intended for a set number of purposes, and remittances are allowed only up to a maximum annual limit which is currently set at USD 250,000.2.
Under which circumstances FEMA is applied?
FEMA is applicable to:Foreign exchange.Foreign security.Exportation of any commodity and/or service from India to a country outside India.Importation of any commodity and/or services from outside India.Securities as defined under Public Debt Act 1994.Purchase, sale and exchange of any kind (i.e. Transfer)More items…•
Who regulates foreign exchange?
Reserve Bank of IndiaThe foreign exchange regulations in India are governed by the Foreign Exchange Management Act, 1999 (“FEMA”). The apex foreign exchange regulatory authority in India is the Reserve Bank of India (“RBI”) which regulates the law and is responsible for all key approvals.
What is FEMA violation?
Currently, violations under FEMA are compoundable. … Common violations that make a mockery of FEMA include trade based money laundering by over-invoicing of imports and/or under invoicing of exports, round tripping of funds, hawala (illegal remittances), and smuggling of foreign currency.
What are the features of FEMA?
Main Features Activities such as payments made to any person outside India or receipts from them, along with the deals in foreign exchange and foreign security is restricted. It is FEMA that gives the central government the power to impose the restrictions.
What is the penalty for violation of FEMA Act?
In terms of Section 13(1), if any person contravenes any provision of FEMA, 1999, or any rule, regulation, notification, direction or order issued in exercise of the powers under this Act, or contravenes any condition subject to which an authorization is issued by the Reserve Bank, he shall, upon adjudication, be …
Who is an Authorized Person?
“Authorised Person” (AP) means any person – Individual, partnership firm, LLP or body corporate – who is appointed as such by a stock broker (including trading member) and who provides access to trading platform of a stock exchange as an agent of the stock broker.
What are the powers of Ed?
Powers of the Officers: The principal powers of the Officers of the ED are to investigate in cases of money laundering, initiate the proceedings of attachment of property, and to launch prosecution against the accused.
What is Ed function?
The Directorate of Enforcement was established in the year 1956 with its Headquarters at New Delhi. It is responsible for enforcement of the Foreign Exchange Management Act, 1999 (FEMA) and certain provisions under the Prevention of Money Laundering Act.
Why was FEMA needed?
Following a series of natural disasters, the National Governors Association sought to limit the number of federal bodies it needed to coordinate with to obtain relief. It asked Carter to centralize disaster management under one roof, and in response, he created FEMA. … the Federal Disaster Assistance Administration.
What is APR filing?
An Indian Party (IP) / Resident Individual (RI) which has made an Overseas Direct Investment (ODI) has to submit an Annual Performance Report (APR) in Form ODI Part III to the Reserve Bank by 30th of June every year in respect of each Joint Venture (JV) / Wholly Owned Subsidiary (WOS) outside India set up or acquired …
Is FEMA still in force in India?
In the budget of 1997-98, the government had proposed to replace FERA-1973, by FEMA (Foreign Exchange management act). After the approval of president, FEMA 1999 has come into force w.e.f. June, 2000. …
What is difference between FERA and FEMA?
FERA was an act promulgated, to regulate payments and foreign exchange in India, on the contrary FEMA is an act to promote orderly management of the foreign exchange in India. …