The foreign exchange regulation act, 1973 indian kanoon. Due to its decentralized and global nature, the foreign exchange market has been more prone to foreign exchange fraud and has been less regulated than other financial markets. Foreign exchange regulation act 1947 fera is the basic law in this regard and provides the legal basis for regulating certain payments, dealings in foreign exchange as well as securities. April 14, 2015 dear all welcome to the refurbished site of the reserve bank of india.
The foreign exchange regulation act 1947 in india bare acts, banking and insurance, business and corporate, constitutional, consumer laws, criminal law, energy, environmental, family and inheritance, heritage and national importance, immigration law, labor law, the foreign exchange regulation act 1947 national security, others, procedural and administration, property related. Foreign exchange regulation act article content laws. An analysis of the regulation of foreign exchange by rbi. An act to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in india. The words and bullion omitted by act 29 of 1993, section 2 w. It was a legislation passed by the indian parliament in 1973 and came into force with effect from january 1, 1974. The foreign exchange regulation act extended controls to the use or disposal of or dealings in coin, bullion, securities or foreign. Applicable to all the citizens of india, the intent of fera, inter alia, was to conserve the foreign exchange resources of. The foreign exchange regulation act 1947 bangladesh bank.
Fera proceeded on presumption that all foreign exchange earned by indian residents rightfully belonged to the government of india and had to beread more. Fema replaced an act called foreign exchange regulation act fera. Foreign exchange regulation act assigned to nrb as a regulation for foreign exchange transactions. The object of this act is to regulate, in the economic and financial interest of pakistan, certain. This act may be called the foreign exchange regulation act, 1973. An act to amend and consolidate the law relating to foreign exchange in uganda. Fera applied to all citizens of india, all over india. Foreign exchange regulation act central bank of myanmar.
The foreign exchange regulation act 1947 indian bare. Department of foreign exchange has been established under the foreign exchange act no. The foreign exchange regulation act 1947 in india bare acts, banking and insurance, business and corporate, constitutional, consumer laws. An act to regulate certain payments, dealings in foreign exchange and the import and export of currency and bullion. Foreign currency retail off exchange the commission finalized rules to implement the doddfrank wall street reform and consumer protection act regarding regulation of off exchange retail foreign exchange transactions and intermediaries. Foreign exchange transaction act of the republic of korea.
This was later replaced with the foreign exchange regulation act, 1973 fera, which came into effect on 1st jan. General provisions article 1 purpose the purpose of this act is to contribute to the development of the national economy by striving to facilitate foreign transactions, to maintain a balance of international payments and to stabilize the value of currency by ensuring the liberalization of foreign exchange transactions and of other foreign transactions and by revitalizing. Foreign investment in various sectors was permitted. The 74% limit on the holdings of all nonresident foreign investors in any listed security has also been lifted. Vh of 1947 enacted on 11 th march, 1947 in the then british india provides the legal basis for regulating certain payments, dealings in foreign exchange and securities and the import and export of currency and bullion. In this act, unless there is anything repugnant in the subject or context. Vll of 1947, act section 1 subsection 2 subsection 2 2 it extends to the whole of bangladesh, and applies to a all citizens of bangladesh. Finally the parliament has passed the foreign exchange regulation amendment act, 2015 and on september 9, 2015, the gazette has been published. Foreign exchange regulation act amendment 2015 addition to foreign investment friendliness the increasing globalization has led to a massive growth in the number of foreign transactions in recent times.
It is a set of regulations which empowers reserve bank of india to pass regulations and enables government of india to pass rules relating to foreign exchange in tune with foreign trade policy of india. For the purpose of the act, the term foreign exchange used herein shall refer to foreign currency, bills and notes, and marketable securities. It was amended by the foreign exchange regulation amendment act 1993 and later in 2000, was replaced by fema. Lets take a look what has changed and how you might be affected. Under the new foreign exchange act of 2006 act 723. Government initiated the process of liberalisation of indian economy in 1991. Foreign exchange policy and its operations in pakistan are formulated and regulated in accordance with the provisions of the foreign exchange regulation act, 1947. The foreign exchange regulation act, 1947 laws of bangladesh.
Foreign exchange management act department for promotion. The foreign exchange regulation act, 1947 the lawyers. The foreign exchange regulations in india are governed by the foreign exchange management act, 1999 fema. An act to regulate certain payments, dealings in foreign exchange and securities and the import and export of currency and bullion whereas it is expedient. The foreign exchange regulation amendment ordinance. Bangladesh bank, the central bank of bangladesh is responsible for administering foreign exchange transactions in. The foreign exchange management act 1999 or in short fema has been introduced as a replacement for earlier foreign exchange regulation act fera. Exchange control act chapter 99 original enactment. Foreign exchage act, 2004, 2004 uganda legal information. Foreign exchange regulation act fera was introduced at a time when foreign exchange forex reserves of the country were low. One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise. Foreign exchange regulation act, 1947 and notifications issued there under.
The foreign exchange regulation act, 1973 46 of 1973 11584 19th september, 1973 an act to consolidate and amend the law regulating certain payments, dealings in foreign exchange and securities, transactions indirectly affecting foreign exchange and the import and export of currency, for the conservation of the foreign exchange resources of the country and the proper utilisation. The principle objectives of the act is to prevent outflow of indian currency and to see that the foreign exchange due to india should be received. The foreign exchange regulation act fera was legislation passed in india in 1973 that imposed strict. Foreign exchange management act fema features of fema. Foreign exchange management establishment in india of a branch office or a liaison office or a project office or any other place of business regulations, 2016. Notifications issued by the government of the peoples republic of bangladesh and the erstwhile government of pakistan under foreign exchange regulation act, 1947 vii of 1947. Our vision to become a market friendly strategic partner in facilitating the development of an efficient, effective and orderly foreign exchange market that would.
Section 1 short title, extent, application and commencement 1 this act may be called the foreign exchange regulation act, 1973. The rules implement provisions of the doddfrank wall street reform and consumer protection act and the food, conservation, and energy act of 2008, which, together, provide the cftc with broad authority to register and regulate entities wishing to serve as counterparties to, or to intermediate, retail foreign exchange forex transactions. In this act, unless the context otherwise requires. The importexport code number allotted by the director general of foreign trade under section 7 of the foreign trade development and regulation act, 1992 22 of 1992 shall be indicated on all copies of the gr or pp or vpcod forms completed and lodged by the exporter or his agent with the customs or the postal authorities and in all. Extract from the foreign exchange regalarization act, 2019 1962 with second amendment 1. An act to regulate certain payments, dealings in foreign exchange and securities and the import and export of. The ten percent 10% limit placed on nonresident foreign investors holdings in securities listed on the ghana stock exchange has been lifted. Vii of 1947 11 th march, 1947 an act to regulate certain payments, dealings in foreign exchange and securities and the import and export of currency and bullion. Foreign exchange regulation is a form of financial regulation specifically aimed at the forex market that is decentralized and operates with no central exchange or clearing house. Foreign exchange regulation act linkedin slideshare.
Whereas it is expedient in the economic and financial interests of pakistan to provide for the regulation of certain payments, dealings in. Fera emphasized strict exchange control over everything that was specified, relating to foreign exchange. The apex foreign exchange regulatory authority in india is the reserve bank of india rbi which regulates the law and is responsible for all key approvals. In the foreign exchange regulation act, 1947 vii of 1947, hereinafter referred to as the said act. An act to regulate certain payments, dealings in foreign exchange and securities and the import and export of currency and bullion. Introduction the foreign exchange regulation act fera. Reserve bank of india foreign exchange management act. For futher questions regarding exchange control regulation. Except with the previous permission of the controller, no person other than an authorized dealer shall in myanmar, and no person resident in myanmar other than an authorized dealer shall outside myanmar, buy or borrow from or sell or lend to or transfer to or exchange with, any person not being an authorized. Foreign exchange regulation act was introduced in 1947. Whereas it is expedient in the economic and financial interests of bangladesh to provide for the regulation of certain payments, dealings in foreign exchange and securities and the import and export of currency and bullion. The foreign exchange management law central bank of myanmar. Foreign exchange management borrowing and lending regulations, 2018. This act was first adapted in pakistan and then, in bangladesh.
Foreign exchange transaction guideline bangladesh bank. Fera the fourletter acronym for foreign exchange regulation act is a legislation that came into existence in 1973 with the purpose to regulate certain dealings in foreign exchange, impose restrictions on certain kinds of payments and to monitor the transactions impinging the foreign exchange and the import and export of currency. Provision relating to lending borrowing loan, repatriation the sending of money back to ones own country of investment and payment on technology. Bangladesh to provide for the regulation of certain payments, dealings in foreign exchange and securities and the import and export of currency and bullion. V il of 1947 section 1 foreign exchange regulation act, 1947 act no. Offences punishable under the foreign exchange regulation act. Fera proceeded on presumption that all foreign exchange earned by indian residents rightfully belonged to the government of india and had to be collected and surrendered to the reserve bank of india rbi. Foreign exchange regulations act1947 assignment point. The provision relating to the use of foreign exchange in foreign trade to pay or receive. 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. I is mainly regulated by the foreign exchange regulation act fera, which was introduced at a time when foreign exchange forex reserves of the country were low. Search for library items search for lists search for contacts search for a library. The foreign exchange market, globally, experiences transactions of trillions of dollars on a daily basis.
716 1635 257 1415 1632 248 1028 59 1498 596 880 420 413 1567 499 433 334 833 755 76 1056 1627 971 759 787 1201 1251 880 47 1192 1108 1312 1390 1467 1107