Chapter 6
Chapter 6
Chapter 6
Foreign Exchange
FERA | History
The Foreign Exchange Regulation Act (FERA) :
It
was a legislation passed by the Indian
Parliament in 1973 and came into force with
effect from January 1, 1974 with the goal of
conserving India's foreign exchange resources.
The country was facing a trade deficit, which
was followed by a devaluation of the currency
and an increase in the price of imported oil.
The
act specified which foreign exchange
transactions were permitted, including those
between Indian residents and nonresidents.
FERA | Introduction
The Foreign Exchange Regulation Act (FERA) :
Deals with laws which relate to foreign exchange
in India.
FERA emphasized strict exchange control over
everything that was specified, relating to foreign
exchange.
Law violators were treated as criminal offenders
which included imprisonment as per code of
criminal procedure, 1973.
Aimed
at minimizing dealings in foreign
exchange and foreign securities.
FERA | Introduction
FERA | Reasons
FERA | Objectives
FERA | Objectives
FERA | Features
FERA | Features
FERA | Restrictions
FERA | Restrictions
FERA | Summary
FERA | Example
Coca Cola Example:
Coca-Cola was India's leading soft drink until
1977 when it left India after a new
government ordered the company to turn
over its secret formula for Coca-Cola and
dilute its stake in its Indian unit as required by
the Foreign Exchange Regulation Act (FERA).
In 1993, the company (along with PepsiCo)
returned after the introduction of India's
Liberalization policy.
Hawala Transaction
FEMA | Introduction
FEMA | Introduction
FEMA | Features
FEMA | Features
FEMA | Objectives
FEMA | Objectives
Person
Person Resident In India
Person Resident Outside India
A. Person
An individual
A Hindu Undivided family
A company
A Firm
An association of persons or a body of individuals,
whether incorporated or not,
Every artificial judicial person, not falling within any of
the preceding sub clauses, and
Any agency, office or branch owned or controlled by
such person.
Foreign Currency:
Import:
Foreign Security:
Foreign Exchange:
Security:
DUTIES OF AN AUTHORIZED
PERSON
POWERS OF AN
AUTHORISED PERSON
Verifying
the
correctness
of
any
statements, information or particular
Obtaining
information
which
such
authorized person has failed to furnish
Securing compliance with the provisions
of Act
FEMA | Provisions
SECTION 4
FEMA | Provisions
SECTION 8 and 9
SECTIONS 10 and 12
FEMA | Provisions
SECTION 13
Any contravention, under FEMA, may invite following
kinds of penalties:
FEMA | Provisions
SECTION 14
SECTION 15
SECTION 16
FEMA | Provisions
SECTION 17
Empowers the central Govt. to appoint one or
more special Directors to hear the appeals against
the orders of the Adjudicating Authorities.
SECTION 18
Empowers the central Govt. to establish Appellate
Tribunal to hear appeals against the orders of
Adjudicating Authorities and special Director.
SECTION 19
It
makes provisions as regards appeals to
Appellate Tribunal.
FEMA -2000
FERA -1973
1.Content
2. Nature
It was considered as a
criminal law
3. Applicability
4. New Terms
Capital account
transactions, current
FEMA -2000
FERA -1973
5.Penality
6. Object
7. Legal Help
8.Power of Police
Authorities
9. Definition of