India is under FEMA or Foreign Exchange Management Act, 1999 which came into effect on 1st June 2000. Any action or act by an individual in India is regulated under FEMA and so, it is mandatory to have an understanding of the provisions of FEMA before entering into Foreign Exchange business. The concept of FEMA originated during the balance of payment crisis of 1990- 1991. FEMA came into effect on 1st of June 2000 replacing FERA, 1973. FEMA comprises of 49 clauses while FERA had 81 sections and out of the 49, the first 15 are much important. It extends to the whole of India, and applies to all branches, offices and agencies outside India which is owned or controlled by a resident of India.
There are many organizations that are authorised for framing of rules and regulations and monitor the transactions under FEMA. The most important ones are the Ministry of Finance, Government of India, Ministry of Commerce, Reserve Bank, Foreign Exchange Dealers Association of India ,Export promotion council, EXIM bank, ECGC, ADs, FFMCs , GIC, Shipping & Airlines companies, and Exporters& Importers. The objective of FEMA, 1999 is to consolidate and amend the law relating to foreign exchange and facilitating external trade and payments and promoting orderly development and maintenance of foreign exchange market in India.
The webinar session organized by JBS Academy on FEMA was engaged by Mr. Kishor Bhatt, an expert logistician with over 54 years experience. He is a retired bank executive who is a chattered member of the Chartered Institute of Logistics and Transport. Mr. Bhatt is the author of about 22 books in the field of International Business and has contributed many scholarly articles to various magazines and publications.
The webinar session titled ‘FEMA- Understanding all aspects’ was attended by about 181 students. You can watch the recorded video of the webinar which is available in our YouTube channel.
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