Foreign Exchange Management Act: Difference between revisions

The '''Foreign Exchange Management Act, 1999''' ('''FEMA'''), is an [[Act of Parliament|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".<ref>{{Cite web|url=http://finmin.nic.in/the_ministry/dept_eco_affairs/capital_market_div/FEMA_act_1999.pdf|title=THE FOREIGN EXCHANGE MANAGEMENT ACT, 1999|archive-url=https://web.archive.org/web/20160210004120/http://finmin.nic.in/the_ministry/dept_eco_affairs/capital_market_div/FEMA_act_1999.pdf|archive-date=10 February 2016|url-status=dead}}</ref> It was passed in the 29th December  1999 in parliament, replacing the [[Foreign Exchange Regulation Act]] (FERA). This act makes offences related to foreign exchange [[Civil law (common law)|civil offenses]]. It extends to the whole of [[India]],<ref name="FEMA, 1999">{{cite web |title=FEMA, 1999 |url=http://www.dor.gov.in/sites/upload_files/revenue/files/Foreign%20Exchange%20Management%20Act%201999.pdf |publisher=[[Indian Revenue Service|Dept of Revenue]], [[Ministry of Finance (India)|Ministry of Finance]], Govt of India |access-date=9 September 2012 |archive-url=https://www.webcitation.org/6AXmYchwr?url=http://www.indiankanoon.org/doc/600757/ |archive-date=9 September 2012 |url-status=dead |df=dmy }}</ref> replacing FERA, which had become incompatible with the pro-liberalization policies of the [[Government of India]]. It enabled a new [[Foreign exchange market|foreign exchange]] management regime consistent with the emerging framework of the [[World Trade Organization]] (WTO). It also paved the way for the introduction of the [[Prevention of Money Laundering Act, 2002]], which  came into effect from 1 July 2005.