The fera was passed in 1973 at a time when there was acute shortage of foreign exchange in the country. Accordingly, in 1973 the foreign exchange regulation act was amended. Foreign exchange management act fema features of fema. Apr 26, 2017 the main objective of the foreign exchange regulation act, 1973, fera, was to consolidate and amend the law. Fera imposed strict regulations on transactions involving foreign exchange and. Pdf a wide gap between the declared objectives of legislation and the actual results is nothing new in india. Foreign exchange regulation act was introduced in 1947. It was a legislation passed by the indian parliament in 1973 and came into force with effect from january 1, 1974.
Even though some practice tests are old dating as far back as 2005, the format of the act hasnt changed much since then except for the introduction of a redesigned writing section in 2015, so youre basically still taking the same. Jul 28, 2016 the foreign exchange regulation act fera was legislation passed in 1973 that imposed strict regulations on certain kinds of payments, the dealings in foreign exchange and securities and the transactions which had an indirect impact on the foreig. Fera 1973 act was introduced at a time when foreign exchange. The foreign exchange regulation act 1947 bangladesh bank. Foreign exchange regulation act linkedin slideshare.
It was amended by the foreign exchange regulation amendment act 1993 and later in 2000, wa. Fera was passed to regulate the financial transactions concerning foreign exchange and securities. As amended by the foreign exchange regulation amendment act, 1993. Foreign exchange regulation act fera was promulgated in 1973 and it came into force on january 1, 1974. Foreign exchange regulation act, 1947 state bank of pakistan. Main features of the foreign exchange management act fema. Foreign exchange regulation act 1973 complete act citation. The foreign exchange management act,1999 42 of 1999 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. The enforcement directorate is a part of the department of revenue, ministry of finance, and government of india whose primary task is to enforce economic laws and counted the economic crime in india. Provisions of foreign exchange management act fema provides free transaction on current account subject to the guidelines by the rbi. To obtain an aligned printout please download the pdf or word. The main objective of the foreign exchange regulation act, 1973 fera was toconsolidate and amend the law. Jan 30, 2015 in the backdrop of acute shortage of foreign exchange in the country, the foreign exchange regulation act of 1973 fera was enacted.
The words and bullion omitted by act 29 of 1993, section 2 w. Ed regulations under foreign exchange regulation act, 1973 but later on fera is being replaced by the fema. The foreign exchange regulation act fera is legislation that was passed by the indian parliament in 1973 and came into effect as of january 1, 1974. The foreign exchange management act 1999 or in short fema has been introduced as a replacement for earlier foreign exchange regulation act fera. Foreign exchange and management act, 1999 academike. Prepaid expenses trackeruseful for accounting professionals. Difference between fera and fema with comparison chart. Application of 1section 360 of the code of criminal procedure, 1973, and of the probation of offenders act, 1958. Chapter 18 mrtp act, fera, and fema chapter outline monopolies and restrictive trade practices act mrtp, 1969 foreign exchange regulation act fera, 1973 foreign exchange management act fema, 1999 case selection from business environment, 2nd edition book. Uma shankar patnaik abstract this paper estimate and examine the technical efficiencies of indian manufacturing sector covering 144 threedigit industries for the period of 197374 to 199798.
Section66 application of 1section 360 of the code of criminal procedure, 1973, and of the probation of offenders act, 1958 section67 application of the customs act, 1962 section68 offences by companies. Government initiated the process of liberalisation of indian economy in 1991. The code of criminal procedure, 1973 crpc 1st page. The act was promulgated in india when the position of foreign reserves wasnt satisfactory. But what is distinctive about the foreign exchange regulation act fera is.
Xxvi of 1973 passed by the national assembly of pakistan received the assent of the president of the islamic republic of pakistan on friday the 9th february, 1973 an act to amend and consolidate the laws relating to registration and training of nurses. This legislation was passed by the indian parliament by the government of indira gandhi but it came into force with effect from january 1, 1974. Here is a brief summarized description of what fera and fema mean. It was amended by the foreign exchange regulation amendment act 1993 and later in 2000, was replaced by fema. Gk, general studies, optional notes for upsc, ias, banking, civil services. Vii of 1947 11 th march, 1947 an act to regulate certain payments, dealings in foreign exchange and securities and the import and export of currency and bullion.
Foreign investment in various sectors was permitted. Section 1 short title, extent, application and commencement 1 this act may be called the foreign exchange regulation act, 1973. Fera emphasized strict exchange control over everything that was specified, relating to foreign exchange. Over 50 act real tests can be downloaded free of charge. Fera applied to all citizens of india, all over india. The foreign exchange management act, 1999 fema is an act of the parliament of india to. The act came into force, to regulate foreign payments, securities, currency import and export and purchase of fixed assets by foreigners. Foreign exchange management act, 1973 as amended by the foreign exchange regulation amendment act, 1993 46 of 1973 an act to consolidate and amend the law regulating certain payments, dealings in foreign exchange and securities, transactions indirectly affecting foreign exchange and the import and export of currency, for the conservation of the foreign exchange resources of the country. An act to consolidate and amend the law relating to foreign exchange with the objective. Fema was introduced because the fera didnt fit in with postliberalisation policies. Fera act negotiable instrument foreign exchange market.
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 forexand securities and the transactions which had an indirect impact on the foreign exchange and the import and export of currency. Foreign exchange regulation act, shortly known as fera, was introduced in the year 1973. Sep 14, 2011 fera was enacted in september 1973 and it came in force from january 1, 1974. Foreign exchange regulation act fera was introduced at a time when foreign exchange forex reserves of the country were low. This act may be called the foreign exchange regulation act, 1973. The foreign exchange regulation act fera was legislation passed in 1973 that imposed strict regulations on certain kinds of payments, the dealings in foreign exchange and securities and the transactions which had an indirect impact on the foreign exchange and the import and export of currency. Section 29 of this act referred directly to the operations of mncs in india. Foreign exchange regulation act, 1973 reserve bank of india. Historical background the foreign exchange regulation act of 1973 fera enacted in 1973, in the backdrop of acute shortage of foreign exchange in the country, fera had a controversial 27 year stint during which many bosses of the indian corporate world found themselves at the mercy of the enforcement directorate e. Foreign exchange regulation act, 1947 and notifications issued there under. Short title, extent and commencement 1 this act may be called the code of criminal procedure, 1973.
Fema replaced an act called foreign exchange regulation act fera. Difference between fera and fema explained day today gk. Foreign exchange regulation act, 1947 bangladesh customs. Foreign exchange policy and its operations in pakistan are formulated and regulated in accordance with the provisions of the foreign exchange regulation act, 1947. The object of this act is to regulate, in the economic and financial interest of pakistan, certain.
The act came into force, to regulate inflow and outflow of foreign currency, foreign payments, securities and. Pakistan act, 1956, all deposits, credits and balance payable in any foreign currency. Fera to further strengthen the control and regulate, the then congress government enacted a new law foreign exchange regulation act 1973 with 81 section and it came into force from 1 st jan 1974 fera 1973 act was introduced at a time when foreign exchange forex reserves of the country were low. Project report cma data excel format related to cash credit. The code of criminal procedure, 1973 crpc 2nd page.
Fera proceeded on presumption that all foreign exchange earned by indian residents rightfully belonged to the government of india and had to be collected and surrendered to the reserve bank of india rbi. The bill was formulated with the aim of regulating payments and foreign exchange. Introduction the foreign exchange regulation act fera. This was later replaced with the foreign exchange regulation act, 1973 fera, which came into effect on 1st jan. Fera consists of 81 complex sections under fera, any offence was a criminal one which included imprisonment as per code of criminal procedure, 1973. The foreign exchange regulation act, 1973 indian kanoon. Whereas it is expedient in the economic and financial interests of pakistan to provide for the regulation of certain payments, dealings in. Foreign exchange management act, 1999 bare acts law. What is fera, what is fema, brief explanation for nris. Fema is foreign exchange management act, it came into force in july 2000. Archived from the original pdf on 9 september 2012.
Foreign exchange regulation act, 1973 complete act bare act. The foreign exchange regulation act, 1947 180 the foreign exchange regulation act, 1947 act no. Without prejudice to the provisions of section 28 and section 47 and notwithstanding anything contained in any other provision of this act or the provisions of the companies act, 1956 1 of 1956, a person resident outside india whether a citizen of india or not or a person who is not a citizen of india but is resident in india, or a company other than a banking company which is not. Foreign exchange management act 2000 pdf download 14579g. Nris frequently hear the words fera and fema when it comes to dealings the involve india. It was a legislation passed by the indian parliament in 1973 and came into force with effect from january. In this act, unless there is anything repugnant in the subject or contest. Enforcement of foreign exchange management act fema is entrusted to a separate directorate, which undertakes investigations on contraventions of the act. Foreign exchange regulation act 1973, 43 of 1973 restriction on holding of immovable property outside india no person resident in india shall, except with the general or special permission of the reserve bank, acquire or hold or transfer or dispose of by sale, mortgage, lease, gift, settlement or otherwise, any immovable property situate. Section 29 in the foreign exchange regulation act, 1973. Fera was enacted in september 1973 and it came in force from january 1, 1974.
206 1238 559 531 446 963 345 1144 1229 729 1481 1473 744 8 753 1159 1136 613 1257 550 458 964 254 248 701 861 1162 790 49 698 1476 1535 1246 867 936 706 1073 1215 1026 801 226 752 342 984 558 207 793 1079 954 411