Page 61 - DCOM404_CORPORATE_LEGAL_FRAMEWORK

Corporate Legal Framework Pretty Bhalla, Lovely Professional University

Notes Unit 3: FEMA Act, 1999

CONTENTS

Objectives
Introduction
3.1 Definition under the Act

3.2 Provisions relating to an Authorised Person
3.3 Regulation and Management of Foreign Exchange

3.4 Contravention and Penalties [Secs.13 to 15]
3.4.1 Penalties
3.4.2 Enforcement of the Orders of Adjudicating Authority
3.4.3 Power to Compound Contraventions

3.5 Adjudication and Appeal [Secs.16-35]
3.6 Directorate of Enforcement
3.7 Miscellaneous Provisions
3.8 Summary
3.9 Keywords

3.10 Self Assessment
3.11 Review Questions
3.12 Further Readings

Objectives

After studying this unit, you will be able to:

Describe the provisions relating to an authorized person
Discuss miscellaneous provisions
Explain the directorate of enforcement
Discuss the regulation and management of foreign exchange

Introduction

In the earlier unit, you came to know about the Consumer Protection Act. In this unit, you will
study about the Foreign Exchange Management Act.
The Foreign Exchange Management Act (FEMA), 1999 (FEMA) replaces the Foreign Exchange
Regulation Act (FERA) 1973. FERA was introduced in 1974 to consolidate and amend the then
existing law relating to foreign exchange. FERA aimed at having stringent controls to conserve
India’s foreign exchange. FERA was amended in 1993 to bring about certain changes, as a result
of introduction of economic reforms and liberalisation of the Indian economy.

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