FEMA

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". It was passed in 1999 and replaced the Foreign Exchange Regulation Act (FERA) which was introduced in 1973.

FEMA is applicable to all branches, offices and agencies outside India owned or controlled by a person resident in India. It also applies to any contravention committed outside India by any person resident in India.

FEMA regulates all kinds of foreign exchange transactions in India. It provides for the regulation of foreign exchange transactions, including the purchase and sale of foreign exchange, the transfer of funds from India to abroad, and the import and export of currency. It also provides for the regulation of foreign exchange transactions related to the acquisition and transfer of immovable property outside India.

FEMA also provides for the regulation of foreign exchange transactions related to the borrowing and lending of foreign exchange, the issue of foreign exchange, the transfer of foreign exchange, and the payment of foreign exchange. It also provides for the regulation of foreign exchange transactions related to the settlement of foreign exchange transactions.

FEMA also provides for the regulation of foreign exchange transactions related to the investment of foreign exchange, the transfer of foreign exchange, and the payment of foreign exchange. It also provides for the regulation of foreign exchange transactions related to the repatriation of foreign exchange.

FEMA also provides for the regulation of foreign exchange transactions related to the transfer of funds from abroad to India, the transfer of funds from India to abroad, and the transfer of funds from abroad to India. It also provides for the regulation of foreign exchange transactions related to the transfer of funds from abroad to India for the purpose of investment.