Professor Priti Upadhyaya
Foreign exchange management actForeign Exchange Management Act (FEMA) of 1999 is an Indian law regulating foreign exchange transactions to facilitate external trade, payments, and the orderly development of India's foreign exchange market, replacing the stricter FERA by focusing on liberalization while preventing illicit activities like money laundering and ensuring compliance with international norms. It covers rules for residents, NRIs, FDI, investments, and penalties, with enforcement by the Directorate of Enforcement (ED).
Foreign exchange management actForeign Exchange Management Act (FEMA) of 1999 is an Indian law regulating foreign exchange transactions to facilitate external trade, payments, and the orderly development of India's foreign exchange market, replacing the stricter FERA by focusing on liberalization while preventing illicit activities like money laundering and ensuring compliance with international norms. It covers rules for residents, NRIs, FDI, investments, and penalties, with enforcement by the Directorate of Enforcement (ED).
Key Objectives
- Facilitate Trade & Payments: Streamline foreign currency flows for international business.
- Market Development: Promote orderly growth of the forex market in India.
- Investment Promotion: Provide a framework for Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI).
- Currency Stability: Maintain exchange rate stability and manage foreign exchange reserves.
- Prevent Illicit Activities: Combat money laundering and illegal foreign exchange dealings.
Foreign exchange management act
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