abhishreshthaa
Abhijeet S
ABOUT FEMA:
“An act 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”.
Features of FEMA
“An act 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”.
Features of FEMA
- The primary difference between FERA and FEMA therefore lies in the fact that offences under FEMA are not regarded as criminal offences and only invite penalties, not prosecution and imprisonment.
- FEMA now codifies in the legislation and rules itself various transactions, which had been permitted by notification under FERA.
- Under FEMA, all current account transactions in forex (such as expenses, which are not for capital purposes) are permitted, except to the extent that the Central Government notifies.
- However, so far as capital account transactions are concerned, all capital account transactions in forex are prohibited, except to the extent as may be notified by RBI