ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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".

Detailed explanation-2: -Main Features of Foreign Exchange Management Act, 1999 It gives powers to the Central Government to regulate the flow of payments to and from a person situated outside the country. All financial transactions concerning foreign securities or exchange cannot be carried out without the approval of FEMA.

Detailed explanation-3: -FEMA 21/2000-RB dated 3rd May, 2000. (i) Except under the provisions of the Act or rules or regulations made thereunder, acquisition or transfer of immovable property in India by a person including an Indian citizen resident outside India would require approval of Reserve Bank.

Detailed explanation-4: -Parliament of India enacted the Foreign Exchange Management Act (FEMA) on 29 December 1999 replacing FERA.