Environment Fema Act 2000 Pdf


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FERA Act was introduced at a time when foreign exchange. (Forex) reserves of the The object of FEMA , (effective June1, ). The Foreign Exchange Management Act, (FEMA) is an Act of the Parliament of India "to . Foreign Exchange Management (Current Account Transactions) Rule, ; Foreign Archived from the original (PDF) on 9 September 47 of the Foreign Exchange Management Act (42 of ), the Management (Current Account Transactions) Rules, dated 3rd May as.

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of section 47 of the Foreign Exchange Management Act, (42 of ), the Reserve Bank ii) They shall come into force on 1st day of June, 2. Foreign Exchange Management Act, (42 of ), the Reserve Bank Security by a Person Resident outside India) Regulations, This Act may be called the Foreign Exchange Management Act, • It extends to the whole of India. • It shall also apply to all branches, offices and agencies.

Definition of FEMA Foreign exchange management act is very helpful law for development of foreign exchange market in India. It was passed in and came into effect from June 1, to entire country. After this foreign exchange regulation act FERA was closed. Objectives of FEMA. Main objective of apply FEMA is to reduce the restriction on foreign exchange.

The individual and aggregate investment limits for the QFIs shall be 5 per cent and 10 per cent respectively of the paid up capital of an Indian company. Further, wherever there are composite sectoral caps under the extant FDI policy, these limits for QFI investment in equity shares shall also be within such overall FDI sectoral caps. The onus of monitoring and compliance of these limits shall remain jointly and severally with the respective QFIs, DPs and the respective Indian companies receiving such investment.

Prior to its substitution, clause ii read as under:. Substituted by. Prior to its omission, it read as under:. Prior to its substitution, regulation 6B, read as under:. Report to RBI. Prior to substitution, sub-regulation 2 read as under:. Provided that the person to whom the shares are being transferred has obtained prior permission of Central Government to acquire the shares if he has previous venture or tie up in India through investment in shares or debentures or a technical collaboration or a trade mark agreement or investment by whatever name called in the same field or allied field in which the Indian company whose shares are being transferred is engaged.

Prior to their omission, the said provisos read as under:. Prior to its substitution, it read as under:. Prior to its substitution, sub-clause e read as under:. Schedule I, other than item Nos. Prior to its omission, clause a read as under:.

Prior to its omission, clause 1 read as under:. Prior to its substitution, clause 2 read as under:. Where, however, the shares are being sold by the foreign collaborator or the foreign promoter of the Indian company to the existing promoters in India with the object of passing management-control in favour of the resident promoters the proposal for sale will be considered at a price which may be higher by upto a ceiling of 25 per cent over the price arrived at as above,.

B the prevailing market price in small lots as may be laid down by the Reserve Bank so that the entire shareholding is sold in not less than five trading days through screen based trading system,. Alternatively, intangible assets shall be reduced from the equity capital and reserves excluding revaluation reserves and the figure so arrived at shall be divided by the number of equity shares issued and paid-up.

The NAV so calculated shall be used in conjunction with the average BV multiple of Bombay Stock Exchange National Index during the calendar month immediately preceding the month in which application is made and BV multiple shall be discounted by 40 per cent. This regulation is given retrospective effect from 12th day of January, , that is, from the date on which Press Note No.

Prior to its substitution, sub-paragraph 1 , read as under:. A company which proposes to embark on expansion programme to undertake activities or manufacture items included in Annexure B to this Schedule may issue shares or debentures out of fresh capital proposed to be issued by it for the purpose of financing expansion programme, upto the extent indicated in Annexure B, subject to compliance with the provisions of this paragraph.

Prior to its substitution, proviso read as under:. An Indian company intending to issue shares to a person resident outside India in accordance with these Regulations shall obtain prior approval of the Foreign Investment Promotion Board of Government of India if the company:.

Prior to its substitution, paragraph 4B, read as under:. Prior to its substitution, paragraph 5, read as under:. Issue price.

FEMA - Foreign Exchange Management Act FEMA by RBI.

Dividend Balancing. Report by the Indian company. A not later than 30 days from the date of receipt of the amount of consideration, a report in form specified in Annex C to this Schedule indicating: C the amount of consideration received by Indian company as advance against equity shaU be reported to the Regional Office of the Reserve Bank under whose jurisdiction the Registered Office of the Company operates in the form specified in 'Annex C" within 30 days of receipt thereof.

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Prior to its omission, sub-paragraph i read as under:. The permission may be granted by Reserve Bank subject to such terms and conditions as may be considered necessary. Prior to substitution, sub-paragraph 5 read as under:.

Foreign Exchange Management Act

Prior to its substitution, clause b read as under:. Regulations, , w. Provided such investment is made out of funds raised or collected or brought from outside India through normal banking channel.

Report to Reserve Bank— The link office of the designated branch of an authorised dealer referred to in paragraph 1 shall furnish to the Chief General Manager, RBI, ECD, Central Office, Mumbai, a report on daily basis on PIS transactions undertaken by it, such report to be furnished online or on floppy or in hard copy in a format supplied by Reserve Bank.

Provided further that no prior permission of Central Government shall be required for: Permission to Foreign Institutional Investors for purchase of securities. Provided further that FIIs may offer such securities as permitted by the Reserve Bank from time to time as collateral to the recognized Stock Exchanges in India for their transactions in exchange traded derivative contracts as specified in sub-regulation 6.

In addition, Foreign Central Banks may purchase rupee denominated corporate bonds on repatriation basis within the limits from the date of this Notification. Prior to its substitution, clause b , read as under:.

Taxmann Publications. Provided that such person is not resident in India: Save as otherwise provided in the Act, or rules or regulations made thereunder, no person resident outside India shall issue or transfer any security: Provided that a security issued prior to, and held on, the date of commencement of these Regulations, shall be deemed to have been issued under these Regulations and shall accordingly be governed by these Regulations: Save as otherwise provided in the Act or Rules or Regulations made thereunder, an Indian entity shall not issue any security to a person resident outside India or shall not record in its books any transfer of security from or to such person: Permission for purchase of shares by certain persons resident outside India.

An Indian company may issue bonus shares to its non-resident shareholders, subject to the following conditions: Where a Scheme of merger or amalgamation of two or more Indian companies or a reconstruction by way of demerger or otherwise of an Indian company, has been approved by a Court in India, the transferee company or, as the case may be, the new company may issue shares to the shareholders of the transferor company resident outside India, subject to the following conditions, namely: Provided that a the scheme has been drawn in terms of regulations issued under the Securities and Exchange Board of India Act, ; and b face value of the shares to be allotted under the scheme to the non-resident employees does not exceed 5 per cent of the paid-up capital of the issuing company.

For the purpose of this Regulation, "financial services", shall mean service rendered by banking and non-banking companies regulated by the Reserve Bank, insurance companies regulated by Insurance Regulatory and Development Authority IRDA , pension funds regulated by the Pension Fund Regulatory and Development Authority, other companies regulated by any other financial regulator and such other services as may be directed by Reserve Bank from time to time,] 2 [ c any shares or convertible debentures by way of sale, shall make an application to the Reserve Bank for its approval if: For the purpose of this regulation, 1.

Mode of payment for shares issued to persons resident outside India. B not later than 30 days from the date of issue of shares, 1 [a report in the Form FC-GPR as specified by the Reserve Bank from time to time] together with, i a certificate from the Company Secretary of the company accepting investment from persons resident outside India certifying that: Foreign technology collaboration in any form including licensing for franchise, trademark, brand name, management contract is also prohibited for Lottery Business and Gambling and Betting activities.

The term "under controlled conditions" covers the following: Tea Plantation 2. Prior approval of the State Government concerned in case of any future land use change. Broadcasting 7. National Security Conditions xviii It shall be open to the licensor to restrict the Licensee Company from operating in any sensitive area from the National Security angle. Other conditions xx Licensor reserves the right to modify these conditions or incorporate new conditions considered necessary in the interest of national security and public interest or for proper provision of broadcasting services.

Print Media 8.

Civil Aviation 9. For the purposes of the Civil Aviation sector: Such investment would be subject to the following conditions: Courier services for carrying packages, parcels and other items which do not come within the ambit of the Indian Post Office Act, and excluding the activity relating to the distribution of letters.

Construction Development: Townships, Housing, Built-up infrastructure Satellites - Establishment and operation Wholesale trading would, accordingly, be sales for the purpose of trade, business and profession, as opposed to sales for the purpose of personal consumption. The yardstick to determine whether the sale is wholesale or not would be the type of customers to whom the sale is made and not the size and volume of sales.

An Entity, to whom WT is made, may fulfil any one of the 4 conditions. Such companies would engage only in Business to Business B2B e-commerce and not in retail trading, inter alia implying that existing restrictions on FDI in domestic trading would be applicable to e-commerce as well.

Foreign Exchange Management Act - Wikipedia

Andhra Pradesh 2. Assam 3. Delhi 4. Haryana 5. Himachal Pradesh 1 6. Karnataka 2 8. Maharashtra 9.

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Manipur Rajasthan Uttarakhand Asset Reconstruction Companies Banking - Private sector Banking - Public Sector Commodity Exchanges Infrastructure Company in the Securities Market Insurance Pharmaceuticals Power Exchanges Particulars In Block Letters 1.

Date of receipt of funds 4. Name of the AD through whom the remittance is received 7. Unique Identification Number for the remittance received: If reporting period is different from Account Closing Period, then information should be given on internal assessment Block 1 A: Total Paid-up Capital of Indian Company: Individuals 2.

Companies 3. Foreign Institutional Investors FHs 4. Foreign Trusts 6. Private Equity Funds 7. Pension Provident Funds 8. Partnership Proprietorship firms Financial Institutions ll.

Others non-resident holdings 2. Non-participating Preference Share do not have following rights: Block IB: Sales and Purchase made during the Financial Year Note: Now , under this law , you can bring foreign currency in India without any legal barrier.

Provision regarding dealing in foreign exchange: According to section 3 of FEMA ," only authorized person under the govt.

Provision regarding holding of foreign exchange: According to section 4 of FEMA , " All persons which are provided authority only can hold or purchase foreign exchange in India or outside India. Provision regarding current account transactions: According to section 5 of FEMA ," There is no restriction regarding sale or deal foreign exchange , if it is a current account transaction. The following transaction are deemed current account transactions under FEMA: Provision regarding capital account transactions: Under section six ," RBI will fix the limit of foreign exchange transactions relating to capital account after discussion with Indian govt.

RBI can restrict following: Provision regarding export of goods and services: According to section 7 of FEMA , " It is the duty of exporter to declare the true and correct detail of goods which , he have to sell the market outside India and must send complete report to RBI. RBI can make particular requirement for any exporter. RBI can also make rules and regulations for realization of amount earned from foreign country.

Provision regarding authorised persons: RBI can authorize any body who can deal in money exchange or off shore transaction and foreign exchange. Provision regarding contravention and penalties: If contravention will continue , then he will pay upto Rs. FEMA is a regulatory mechanism that enables the Reserve Bank of India to pass regulations and the Central Government to pass rules relating to foreign exchange in tune with the Foreign Trade policy of India. The Foreign Exchange Regulation Act FERA was legislation passed in India in [4] that imposed strict regulations on certain kinds of payments, the dealings in foreign exchange forex and securities and the transactions which had an indirect impact on the foreign exchange and the import and export of currency.

FERA came into force with effect from January 1, FERA was introduced at a time when foreign exchange Forex reserves of the country were low, Forex being a scarce commodity. Coca-Cola was India's leading soft drink until when it left India after a new government ordered the company to turn over its secret formula for Coca-Cola and dilute its stake in its Indian unit as required by the Foreign Exchange Regulation Act FERA. In , the company along with PepsiCo returned after the introduction of India's Liberalization policy.

This was done in order to relax the controls on foreign exchange in India. FERA was repealed in 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. The buying and selling of foreign currency and other debt instruments by businesses, individuals and governments happens in the foreign exchange market.

Apart from being very competitive, this market is also the largest and most liquid market in the world as well as in India. It constantly undergoes changes and innovations, which can either be beneficial to a country or expose them to greater risks. The management of foreign exchange market becomes necessary in order to mitigate and avoid the risks. Central banks would work towards an orderly functioning of the transactions which can also develop their foreign exchange market.

It is necessary to keep adequate amount of foreign exchange from Import Substitution to Export Promotion. The switch to FEMA shows the change on the part of the government in terms of for the capital. FCRA, has been enacted by the Parliament to consolidate the law to regulate the acceptance and utilization of foreign contribution or foreign hospitality by certain individuals or associations or companies and to prohibit acceptance and utilization of foreign contribution or foreign hospitality for any activities detrimental to national interest and for matters connected therewith or incidental thereto.

This sum has been specified as Rs.

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