To regulate the international business prospects and transactions the Indian government has introduced the FEMA- Foreign Exchange Management Act 1999. By replacing the policies of the previous Foreign Exchange Regulation Act of 1973, the FEMA came into existence to control the foreign exchange transactions in India.
The main objective & aspect of FEMA is to develop a law governing external trade and promote the Indian business sectors in the foreign market by following the Regulations of this act.
The central government of India has formulated FEMA- Foreign Exchange Management Act, regulated by the (RBI) Reserve Bank of India to monitor the direct & indirect flow of foreign transactions.
Various economic measures and reforms have been initiated by the Government to recover the loopholes of the FERA. The essential functions operate through RBI under the Regulations of FEMA are listed below:
- Supervising the deals in international exchange and transactions by giving authority & permission for the foreign exchange dealings, excluding the specific provisions regulated under Section 3 in the Act
- RBI never impose restrictions on the transactions related to the current account. Only the Central Government can take decisions after consulting with RBI under Section 5. However, prior approval is required for the transaction by RBI as per the FEMA Rules, 2000
- Borrowing or issuing foreign security to Indian resident and vice versa
- Controlling the overseas direct investments
- FEMA consultant & compliance services related to the foreign exchange transactions
In India FEMA – Foreign Exchange Management act controls every foreign investments & business ventures. FEMA supervises every rules & regulations specified by the RBI.
FEMA regulates every International business transaction and maintains correspondence with foreign countries.
Hence, we have a team of expertise who offers strategic compliance and advisory services related to Foreign Exchange Management Act issues.
We provide definite FEMA Consultant services on various foreign exchange or cross-border transactions with an intention to uplift the outbound & inbound investments.