Difference Between FERA and 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. ...

1. Why was Fera replaced by FEMA?
2. What are the similarities between FERA and FEMA?
3. What do you mean by FEMA?
4. What is the main objective of FEMA?
5. What are the features of FERA?
6. What is the FERA Act?
7. What is the new name of FERA?
8. When FERA Act was introduced in India?
9. Is FEMA a major departure from Fera?
10. What are the main objectives of FEMA Act 1999?
11. What are FEMA guidelines?
12. What is the full form of Cofeposa?

Why was Fera replaced by FEMA?

FEMA has been introduced as a replacement of FERA, as the Act could not survive the post- liberalization policies. The offences as in FERA which were criminal we shifted to civil offences in FEMA. The similarities like governing bodies, RBI, and central Government would continue.

What are the similarities between FERA and FEMA?

The similarities between FERA and FEMA are as follows: The Reserve Bank of India and central government would continue to be the regulatory bodies. Presumption of extra territorial jurisdiction as envisaged in section (1) of FERA has been retained.

What do you mean by FEMA?

The Central Government of India formulated an act to encourage external payments and across the border trades in India known as the Foreign Exchange Management Act. FEMA (Foreign Exchange Management Act) was introduced in the year 1999 to replace an earlier act FERA (Foreign Exchange Regulation Act).

What is the main objective of FEMA?

The main objective behind the Foreign Exchange Management Act (1999) is to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments. It was also formulated to promote the orderly development and maintenance of foreign exchange market in India.

What are the features of FERA?

(1) This Act may be called the Foreign Exchange Regulation Act, 1973. (2) It extends to the whole of India. (3) It applies also to all citizens of India outside India and to branches and agencies outside India of companies or bodies corporate, registered or incorporated in India.

What is the FERA Act?

The Federal Emergency Relief Administration (FERA) was a program established by President Franklin Roosevelt in 1933, building on the Hoover administration's Emergency Relief and Construction Act. ... FERA's main goal was to alleviate household unemployment by creating new unskilled jobs in local and state government.

What is the new name of FERA?

FERA was repealed in 1998 by the government of Atal Bihari Vajpayee and replaced by the Foreign Exchange Management Act, which liberalised foreign exchange controls and restrictions on foreign investment.

When FERA Act was introduced in India?

Accordingly, a new act ,FEMA( Foreign Exchange Management Act ) 1999 replaced the FERA. 1. The FERA was introduced in 1974 when India's foreign exchange reserves position was not satisfactory. It required stringent controls to conserve foreign exchange and to utilize in the best interest of the country.

Is FEMA a major departure from Fera?

FEMA: A Major Departure from FERA

As is obvious from the name of the Act itself, the importance of explaining FEMA is on 'exchange management' following as under FERA the importance was on 'exchange regulation' or exchange charge.

What are the main objectives of FEMA Act 1999?

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.

What are FEMA guidelines?

Foreign Exchange Management Act or in short (FEMA) is an act that provides guidelines for the free flow of foreign exchange in India. ... FEMA is applicable in all over India and even branches, offices and agencies located outside India, if it belongs to a person who is a resident of India.

What is the full form of Cofeposa?

THE CONSERVATION OF FOREIGN EXCHANGE AND PREVENTION OF SMUGGLING. ACTIVITIES ACT, 1974. (Act 52 of 1974)