• So what is FEMA ?
• What is FERA and how it is
related to FEMA.
• Salient features of FEMA.
• Difference between FERA and
Dec 5th 2012 :
Objection raised by opposition on FDI in multi brand
is put to vote and opposition loses @ Lok Sabha.
Dec 6th 2012:
Opposition raises irregularities in the conduct of
Walmart as they had violated the regulations in FEMA,
before FDI was made possible.
Dec 7th 2012 :
The same happens @ Rajya Sabha when objection by
opposition was put to vote regarding FDI in multi
• The Foreign Exchange Management Act (1999)
or in short FEMA has been introduced as a
replacement for earlier Foreign Exchange
Regulation Act (FERA). FEMA came into act
on the 1st day of June, 2000.
• The main objective behind the Foreign
Exchange Management Act (1999) is to
consolidate and amend the law relating to
foreign exchange with objective of facilitating
external trade and payments and for promoting
the orderly development and maintenance of
foreign exchange market in India.
• FEMA is applicable to the all parts
of India. The act is also applicable to
all branches, offices and agencies
outside India owned or controlled by
a person who is resident of India.
FROM FERA TO FEMA
• Liberal form of FERA.
• Extends whole of India.
• It is more human and natural.
• Removes restrictions on drawal
of foreign exchange.
SALIENT FEATURES OF FEMA
• Citizenship abolished and
• Greater importance to IT.
• Realisation, repartiation and
surrenderof foreign exchange is
now governed by FEMA.
• Resident foreign currency
• Posssession and retention of
• Foreign currency, foreign
security or immovable
Difference between FEMA and FERA
Complex 81 Sec
Current A/c not
Simple 49 Sec
service all defined
Has been widened
to include banks
in India similar to
5 Times the Amt.
AA went to high
No help allowed
Civil Offence, with
3 times the Amt.
Tribunal / High C
Sec 32 gives rt to
help of legal