Nothing Special   »   [go: up one dir, main page]
Scribd Logo
Upload

Welcome to Scribd!

  • 94 views

    Presented in Class OF:-Dr. Mahua Dutta: BY: - Group Ankur Agarwal Abhay Katiyar Manish Saraf Sumit Bihari Siddharth Nayak

    Uploaded by

    Amaresh Pandey
    The document provides a summary of the Foreign Exchange Regulation Act (FERA) and its replacement, the Foreign Exchange Management Act (FEMA). It discusses that FERA was introduced in 1973 to regulate foreign exchange and conserve currency reserves, but its strict controls created problems. FEMA was introduced in 2000 to facilitate foreign trade and investment by liberalizing controls while still regulating capital flows and promoting an orderly forex market. Key differences between the acts include FEMA being less stringent and more focused on facilitating external commerce compared to FERA's conservation-focused controls.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd

    Presented in Class OF:-Dr. Mahua Dutta: BY: - Group Ankur Agarwal Abhay Katiyar Manish Saraf Sumit Bihari Siddharth Nayak

    Uploaded by

    Amaresh Pandey
    94 views25 pages
    The document provides a summary of the Foreign Exchange Regulation Act (FERA) and its replacement, the Foreign Exchange Management Act (FEMA). It discusses that FERA was introduced in 1973 to regulate foreign exchange and conserve currency reserves, but its strict controls created problems. FEMA was introduced in 2000 to facilitate foreign trade and investment by liberalizing controls while still regulating capital flows and promoting an orderly forex market. Key differences between the acts include FEMA being less stringent and more focused on facilitating external commerce compared to FERA's conservation-focused controls.

    Original Description:

    Original Title

    Fema

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document provides a summary of the Foreign Exchange Regulation Act (FERA) and its replacement, the Foreign Exchange Management Act (FEMA). It discusses that FERA was introduced in 1973 to regulate foreign exchange and conserve currency reserves, but its strict controls created problems. FEMA was introduced in 2000 to facilitate foreign trade and investment by liberalizing controls while still regulating capital flows and promoting an orderly forex market. Key differences between the acts include FEMA being less stringent and more focused on facilitating external commerce compared to FERA's conservation-focused controls.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    94 views25 pages

    Presented in Class OF:-Dr. Mahua Dutta: BY: - Group Ankur Agarwal Abhay Katiyar Manish Saraf Sumit Bihari Siddharth Nayak

    Uploaded by

    Amaresh Pandey
    The document provides a summary of the Foreign Exchange Regulation Act (FERA) and its replacement, the Foreign Exchange Management Act (FEMA). It discusses that FERA was introduced in 1973 to regulate foreign exchange and conserve currency reserves, but its strict controls created problems. FEMA was introduced in 2000 to facilitate foreign trade and investment by liberalizing controls while still regulating capital flows and promoting an orderly forex market. Key differences between the acts include FEMA being less stringent and more focused on facilitating external commerce compared to FERA's conservation-focused controls.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 25

    PRESENTED IN CLASS OF:Dr.

    MAHUA DUTTA

    BY:- Group ANKUR AGARWAL ABHAY KATIYAR MANISH SARAF SUMIT BIHARI SIDDHARTH NAYAK

    HISTORY INTRODUCTION OF FERA OBJECTIVES PROVISIONS AMENDMENTS FERA TO FEMA INTRODUCTION OF FEMA OBJECTIVES FEATURES AMENDMENTS SIMILARITIES AND COMPARISIONS

    Foreign

    exchange is the system or process of converting one national currency into another, and of transferring money from one country to another

    Foreign currency means any currency other than Indian currency.

    FOREIGN SECURITY

    Foreign security means any security, in the form of shares, stocks, bonds, debentures or any other in foreign currency and includes securities but where redemption or any form of return such as interest or dividends is payable in Indian currency.

    Reason

    The FERA (Foreign Exchange Regulation Act) deals with laws which relate to foreign exchange in India The laws were made to manage foreign investments in India.

    . Accordingly, in 1973 the Foreign Exchange Regulation Act was amended. FERA consists of 81 complex sections Under FERA, any offence was a criminal one which included imprisonment as per code of criminal procedure, 1973.

    prevent

    the outflow of Indian currency To regulate dealings in foreign exchange and securities To regulate import and export of currency.

    To regulate employment of foreign nationals To regulate foreign companies To regulate acquisition, holding etc of immovable property in India by non-residents

    Regulation of dealing in foreign exchange. Restrictions on payments. Restrictions regarding assets held by non residents and import & export of certain currency & bullion . Duty on persons entitled to receive foreign exchange and payment for exported goods.

    cont

    Restriction on appointment of certain persons and companies as agents or technical or management advisers in india Restriction on establishment of place of business in india Prior permission of Reserve Bank required for taking up employment in india by nationals of foreign state Restrictions on immovable property

    The

    important changes are :Power of central government to direct payment in foreign currency in certain cases. Export & transfer of securities.

    Custody of securities by a depository or any other person. Restrictions on the holding of immovable property outside India.

    The main objective of FERA framed against the background of severe foreign exchange problem and controlled economic regime , was conservation and proper utilisation of the foreign exchange resources of the country. FERA created flourishing black market in foreign exchange.

    The demand for new legislation was basically on two main counts
    1. The FERA was introduced in 1974 when Indias foreign exchange reserves position was not satisfactory. It required stringent controls to conserve foreign exchange and to utilize in the best interest of the country. Very strict restrictions have outlived their utility in the current changed scenario. 2. there was a need to remove the draconian provisions of FERA and have a forward-looking legislation covering foreign exchange matters.

    . A ) FERA was not suitable for liberalization policy. Though certain amendments were made in 1993 but they were not sufficient. B ) after 1993, many important changes took place. Foreign exchange reserve also increased C) The provisions of FERA were not favorable for these changes. D) The objective of FERA was to conserve foreign exchange resources which badly affected the comfortable foreign exchange reserves. So the FEMA came into existence.
    17

    To facilitate the external trade and payment To promote of an orderly maintenance of the foreign exchange market In India. Regulation of foreign capital in India. To remove imbalance of payment. To make strong and developed foreign exchange market.
    18

    Regulation of employment business and investment of non-residents . To regulate foreign payments. The new law is more transparent in its application. it has laid down the areas where special permission of the reserve bank/government of India is required.

    19

    Full freedom to a person resident in India to hold or transfer any foreign securities or immovable property situated outside India. A person resident outside India is also permitted to hold shares, securities and property acquired by him while he was resident in India.

    20

    the EEFC account holders and RFC account holders are permitted to freely use the funds held in EEFC\RFC accounts for payment of all permissible current account transactions . The limit for permitting overdraft against NRE accounts balance has been raised from 20,000 to 50,000.

    21

    Automatic approval for external commercial borrowings. Amendment relating to inbound Investments. Amendment relating to Outbound Investments. Other Amendments.

    22

    The RBI and central government would continue to be the regulatory bodies. Presumption of extra territorial jurisdiction as envisaged in section (1) of FERA has been retained. The Directorate of Enforcement continues to be the agency for enforcement of the provisions of the law such as conducting search and seizure.

    Points of Comparison 1.Content

    FEMA -2000 There are 49 sections out of which 12 section relate to operational part and rest with penal provisions Basically it is a civil law The Act applies to all branches , offices and branches outside India owned or controlled by a person resident in India Capital account transactions, current account transactions, persons, services like new terms are introduced.

    FERA -1973 There were 81 sections out of which 32 sections related to operational part and rest deals with penalty, appeals etc. It was considered as a criminal law The Act applied to all citizens of India and to branches and agencies outsides India and to branches and agencies outside India These terms were not defined.

    2. Nature 3. Applicability

    4. New Terms

    5.Penality

    Limited to three times the sum Five times of the sum involved if it is quantifiable .If involved + imprisonment it is not quantifiable . in most of the cases The object is to encourage external trade. The object was to control, regulate and prohibits foreign exchange transactions There was no provision for legal assistance

    6. Object

    7. Legal Help

    The complainant has full right to take legal help from a lawyer or a chartered accountant The power to the police officers has restricts to great extent It has been extended to include banks, money changes, off shore banking units etc The term has defined in accordance with income tax

    8.Power of Police Authorities 9. Definition of authorized person

    Extensive powers had given to police officer It was limited in case of FERA

    10.Definition of Resident

    The term defined was not in accordance with

    You might also like