The document discusses the Foreign Exchange Management Act (FEMA) of 1999 and how it replaced the earlier Foreign Exchange Regulation Act (FERA) of 1973. FEMA was introduced to consolidate and amend laws around foreign exchange in light of India's economic liberalization. It aims to facilitate external trade and payments while effectively managing foreign exchange resources. FEMA regulates transactions in foreign exchange, foreign securities, and immovable property abroad by Indian residents and applies to all of India and Indian entities abroad.