About FEMA
The Foreign Exchange Management Act, 1999 (FEMA) is an 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”.
- It replaced the Foreign Exchange Regulation Act (FERA).
- This act seeks to make offenses related to foreign exchange civil offenses.
- It extends to the whole of India.
- It enabled a new foreign exchange management regime consistent with the framework of the World Trade Organisation (WTO).
- It also paved way to Prevention of Money Laundering Act (PMLA) 2002,
