with Secretary, Department of Economic Affairs, MoF in the chair. World Trade Organisation (WTO). The switch to fema shows the change on the part of the government in terms of for the capital. This act is a civil law and the contraventions of the Act provide for arrest only in exceptional cases. It includes: payments due in connection with foreign trade, other current business, services, and short-term banking and credit facilities in the ordinary course of business payments due as interest on loans and as net income from investments remittances for living expenses of parents, spouse and. 9 Switch from fera edit fera did not succeed in restricting activities such as the expansion of Multinational Corporations. 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. The fera was passed in 1973 at a time when there was acute shortage of foreign exchange in the country.
14 Applicability edit As per Section 1(2) of fcra, 2010, the provisions of the act applies to: Whole of India Citizens of India outside India; and Associate Branches or subsidiaries, outside India, of companies or bodies corporate, registered or incorporated in India Acts/rules/guidelines which regulate. Travel to Nepal and/or Bhutan. The Foreign Exchange Regulation Act (fera) of 1973 in India was replaced on June 2000 by the Foreign Exchange Management Act (fera which was passed in 1999. The management of foreign exchange market becomes necessary in order to mitigate and avoid the risks. As a result, foreign exchange can be purchased for practically all transactions which are of current account nature. Foreign Investment Promotion Board- The Foreign Investment Promotion Board (fipb) is a government body that offers a single window clearance for proposals on Foreign Direct Investment (FDI) in India that are not allowed access through the automatic route. Fema extends to the whole of India. Fema had become the need of the hour best work from home jobs dallas tx since fera had become incompatible with the pro-liberalisation policies of the Government of India. Activities requiring Government Approval Activities that require government approval include Petroleum Sector, Investing Companies in Infrastructure and Service Sector, Defense Strategic Industries,Atomic Minerals, Print Media, Broadcasting, Postal Services, Courier Services,Establishment operation of Satellite, Development of Integrated Township. Although selling or drawing of foreign exchange is done through an authorized person, the RBI is empowered by this Act to subject the capital account transactions to a number of restrictions. This was done in order to relax the controls on foreign exchange in India. The objective of the Act is to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments for promoting the orderly development and maintenance of foreign exchange market in India.