Quick Answer: Why Was Fera Replaced By FEMA?

What is the importance of FEMA?

The main objective of FEMA was to help facilitate external trade and payments in India.

It was also meant to help orderly development and maintenance of foreign exchange market in India.

It defines the procedures, formalities, dealings of all foreignexchange transactions in India..

Is FEMA a civil law?

6) This FEMA Act is a civil law and any kind of contraventions of the Act provide for arrest only in the exceptional cases.

What is FEMA limit?

Under the LRS, Indian citizens can transfer money to bank accounts abroad without needing to get special permission. However, money can only be intended for a set number of purposes, and remittances are allowed only up to a maximum annual limit which is currently set at USD 250,000.2.

When was Fera replaced by FEMA?

1999It was passed in the winter session of Parliament in 1999, replacing the Foreign Exchange Regulation Act (FERA).

How is Fera different from FEMA?

FERA was an act promulgated, to regulate payments and foreign exchange in India, on the contrary FEMA is an act to promote orderly management of the foreign exchange in India. …

When was FERA created?

May 1933Federal Emergency Relief Administration/Founded

What are the main provisions of FEMA?

The major provisions of FEMA, 1999 relate to following matters :Dealing in foreign exchange, etc.Holding of foreign exchange, etc.Current account transactions.Capital account transactions.Export of goods and services.Realization and repatriation of foreign exchange.More items…•

Can FEMA take your food stockpile?

FEMA really don’t want to go door to door, confiscating stored food so they can redistribute it. Their legal powers to do this are very dubious, for a start. Some websites claim that Executive Order 10998, a Kennedy-era law, gives FEMA the authority to seize all food supplies. Good news – it doesn’t.

Whats FEMA stand for?

Federal Emergency Management AgencyThe mission of the Federal Emergency Management Agency (FEMA) is to support our citizens and first responders to ensure that, as a Nation, we work together to build, sustain, and improve our capability to prepare for, protect against, respond to, recover from, and mitigate all hazards.

Who is the founder of FEMA?

Zbigniew BrzezinskiJimmy CarterFederal Emergency Management Agency/Founders

What was the need of FEMA when Fera was there?

The primary objective of FEMA act was “facilitating external trade and payments and promoting the orderly development and maintenance of foreign exchange market in India”. FEMA was enacted by the Parliament of India in the winter session of 1999 to replace the Foreign Exchange Regulation Act (FERA) of 1973.

What are the features of FEMA?

Main Features of Foreign Exchange Management Act, 1999It gives powers to the Central Government to regulate the flow of payments to and from a person situated outside the country.All financial transactions concerning foreign securities or exchange cannot be carried out without the approval of FEMA.More items…

How many sections are in FEMA?

49 sectionsFEMA contains 7 Chapters divided into 49 sections of which 12 sections cover operational part and the rest contravention, penalties, adjudication, appeals, enforcement directorate, etc.

Why was FERA introduced?

FERA – the four-letter acronym for Foreign Exchange Regulation Act is a legislation that came into existence in 1973 with the purpose to regulate certain dealings in foreign exchange, impose restrictions on certain kinds of payments and to monitor the transactions impinging the foreign exchange and the import and …

What is FEMA violation?

Ans. Contravention is a breach of the provisions of the Foreign Exchange Management Act (FEMA), 1999 and rules/ regulations/ notification/ orders/ directions/ circulars issued there under. Compounding refers to the process of voluntarily admitting the contravention, pleading guilty and seeking redressal.

What is FEMA declaration?

Foreign Exchange Management Act or in short (FEMA) is an act that provides guidelines for the free flow of foreign exchange in India. It has brought a new management regime of foreign exchange consistent with the emerging frame work of the World Trade Organisation (WTO).

What was FEMA called before?

the Federal Civil Defense AdministrationHarry Truman started FEMA’s forerunner, the Federal Civil Defense Administration, in 1950.

What is FERA company?

FERA companies are the companies in which the non-resident interest (viz., foreign equity share capital) was more than 40%.