Information about foreign exchange management act,1999

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As per article 246 of constitution of India the Parliament has exclusive power to make law with respect to any of the matter enumerated in the union list in the seventh schedule the foreign exchange management Act 1999 can be traced to various entries in the union list.

The foreign exchange management Act 1999 was enacted to consolidate and amend the law relating to Foreign Exchange with objective of acid relating external trade and payment and for promoting the orderly development and maintenance of foreign exchange market in India in fact it is the central legislation that deals with inbound investment in to India and outbound investment from India and trade and business between India and the other countries.

There are some facilities which provided by fema:-

Faimer provide free transaction on current account subject to reasonable restriction that may be imposed.

Fema provide capital account transaction realisation of export proceeds.

Fema provide dealing in foreign exchange through authorised person example authorised dealer /money changer/ Offshore banking units.

Fema provide adjudication of offences- appeal provision including special director and appellate Tribunal.

Applicability of fema act:-

Foreign exchange management Act 1999 extend to the whole of India the act also applied to all branches offices and Agencies outside India owned or controlled by a person resident in India and also to any contravention there under committed outside India by a person to whom this act applies.

FEMA has considerable e liberalise provision in respect of foreign exchange our in extra ordinary situation may arise. The central government has been empowered to suspend operation of any or all provision of f e m a in Public Interest by issuing a notification . the central government has also been empower to relax suspension by issuing a notification.


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