With reference to the Foreign Exchange Management Act (FEMA), consider the following statements: 1. It aims to facilitate external trade and payments and maintain the foreign exchange market. 2. Securities and Exchange Board of India (SEBI) is responsible for administering FEMA. 3. It governs all foreign exchange transactions involving residents and non-residents. Which of the statements given above are correct? |ForumIAS

Q. With reference to the Foreign Exchange Management Act (FEMA), consider the following statements:
1.It aims to facilitate external trade and payments and maintain the foreign exchange market.
2.Securities and Exchange Board of India (SEBI) is responsible for administering FEMA.
3.It governs all foreign exchange transactions involving residents and non-residents.
Which of the statements given above are correct?

[A] 1 and 2 only

[B] 2 and 3 only

[C] 1 and 3 only

[D] 1, 2 and 3

Answer: C

Notes:

Explanations –

Statements 1 and 3 are correct. FEMA aims to facilitate external trade and payments and promote the orderly development and maintenance of the foreign exchange market in India. FEMA governs all foreign exchange transactions involving residents and non-residents, including cross-border investments and payments.

Statement 2 is incorrect. The Reserve Bank of India (RBI) governs FEMA.

Source: The Hindu

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