What are the main objectives of FERA and FEMA?
The main objective of the Foreign Exchange Regulation Act, 1973, (FERA), was to consolidate and amend the law; regulate certain payments; dealings in foreign exchange and securities; transactions, indirectly affecting foreign exchange; the import and export of currency, for the conservation of the foreign exchange resources of the country; and, finally, the proper utilisation of this foreign exchange so as to promote the economic development of the country. The Foreign Exchange Management Act, 1999, (FEMA) is an Act to consolidate and amend the law relating to Foreign Exchange, with the objective of facilitiating external trade and, payments and for promoting the orderly development and maintenance of the foreign exchange market in India.
