Table of Contents
How many sections are there in FEMA 1999?
49 Sections
FEMA 1999. Foreign Exchange Regulation Act, 1973 (FERA) was replaced by the Foreign Management Act, 1999 (FEMA). FEMA was enacted by Parliament of India and it came into force on 1st June, 2000. There are a total of 49 Sections divided into 7 chapters.
What do you mean by FEMA Act 1999?
Foreign Exchange Management Act
The Foreign Exchange Management Act, 1999 (FEMA), is an Act of the Parliament of India “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”.
What are the main provisions of FEMA Act 1999?
Major Provisions of FEMA Act 1999: Control over the realization of export proceeds. Dealing in foreign exchange through authorized persons like an authorized dealer or money changer etc. Any person can sell or withdraw foreign exchange, without any prior permission from RBI and then can inform RBI later.
Who administers the FEMA Act 1999?
Foreign Exchange Management Act, 1999 (FEMA) is administered through the authorised persons and is based on the declarations and averments made to them by persons while undertaking the transactions.
What are the objectives of FEMA Act?
The primary objective of FEMA act was “facilitating external trade and payments and promoting the orderly development and maintenance of foreign exchange market in India”. FEMA was enacted by the Parliament of India in the winter session of 1999 to replace the Foreign Exchange Regulation Act (FERA) of 1973.
What is FEMA limit?
Individuals can avail of foreign exchange facility for the following purposes within the LRS limit of USD 2,50,000 on financial year basis: Private visits to any country (except Nepal and Bhutan) Gift or donation.
What is FEMA, 1999 What is the provision about contravention and penalties explain?
Contraventions under FEMA is subject to Penalty prescribed under section 13, which is upto 300\% of sum involved in contravention, and if the sum is not quantifiable then penalty upto Rs. 2 lacs, is liable. 5000 for every day after the first day that contravention happened.
What are the duties and powers of an authorized person under FEMA, 1999?
(5) An authorised person shall, before undertaking any transaction in foreign exchange on behalf of any person, require that person to make such declaration and to give such information as will reasonably satisfy him that the transaction will not involve, and is not designed for the purpose of any contravention or …
How many sections are there in the FEMA?
FEMA contains 7 Chapters divided into 49 sections of which 12 sections cover operational part and the rest 37 sections deal with contraventions, penalties, adjudication, appeals, enforcement directions, etc. FEMA makes provisions for dealings in foreign exchanges. Broadly, all current account transactions are free.
When did FEMA come into force?
On June 1, 2000, vide notification No G.S.R. 371 (E) the Foreign Exchange Management Act, 1999 (FEMA [or] Act) was brought in force to replace the then existing FERA.
What is Section 5 of the foreign exchange Management Act?
1. In terms of provisions of Section 5 of Foreign Exchange Management Act, any person may sell or draw foreign exchange to or from an authorised dealer if such sale or withdrawal is a current account transaction.
What is the purpose of the foreign exchange Management Act (FEMA)?
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’.