The Foreign Exchange Management
Act (1999) or in short FEMA has been introduced
as a replacement for earlier Foreign Exchange
Regulation Act (FERA). FEMA came into act on the
1st day of June, 2000.
The main objective behind the
Foreign Exchange Management Act (1999) is to
consolidate and amend the law relating to
foreign exchange with objective of facilitating
external trade and payments and for promoting
the orderly development and maintenance of
foreign exchange market in India.
FEMA is applicable to the all
parts of India. The act is also applicable to
all branches, offices and agencies outside India
owned or controlled by a person who is resident