Page 74 - DCOM404_CORPORATE_LEGAL_FRAMEWORK

Unit 3: FEMA Act, 1999

3.9 Keywords Notes

Currency: This expression includes all currency notes, postal notes, postal orders, money orders,
cheques, drafts, travellers’ cheques, letters of credit, bills of exchange and promissory notes,

credit cards or such other similar instrument as may be notified by the Reserve Bank.

Export: Outflow of goods and inflow of foreign currency.
Foreign Exchange Management Act: Foreign Exchange Management Act is to facilitate external
trade and payments and to promote the orderly development and maintained of foreign exchange
in India.
Import: Import with its grammatical variations and cognate expressions, means bringing into
India any goods or services.

3.10 Self Assessment

Choose the appropriate answers:
1. FERA stands for:
(a) Foreign Exchange Revenue Act (b) Foreign Exchange Regulation Act
(c) Foreign Exchange Regional Act (d) None

2. In which year FEMA replaces the FERA
(a) 1973 (b) 1974
(c) 1998 (d) 1999
3. Means of Indian currency
(a) Currency which is expressed or drawn in yen

(b) Currency which is expressed or drawn in dollar
(c) Currency which is expressed or drawn in Euro
(d) Currency which is expressed or drawn Indian rupees
4. PIO stands for:

(a) Pakistan Indian Organization (b) Pakistan Indian Origin
(c) Person of Indian Origin (d) None

5. If the contravention continues, the penalty of ` …………… after the first day during the
period in which the contravention continue shall be imposed.
(a) ` 300 per day (b) ` 400 per day
(c) ` 500 per day (d) ` 200 per day
6. IPC stands for:
(a) International Personal Computer (b) Indian Personal Computer
(c) International Penal Code (d) Indian Penal Code

7. Which section provides that any person aggrieved by any decision or order to the Appellate

Tribunal may file an appeal to the High Court.
(a) Sec.35 (b) Sec.34
(c) Sec.36 (d) Sec.38

LOVELY PROFESSIONAL UNIVERSITY 69