The Foreign Exchange Management Act (FEMA) governs all foreign exchange transactions in India, ensuring orderly development of the forex market. FEMA regulates capital and current account transactions, overseas investments, foreign remittances, and cross-border business dealings. It aims to promote transparency, facilitate international trade, and prevent misuse of foreign exchange.
Under FEMA, individuals and businesses must comply with RBI-issued notifications, circulars, and master directions. Non-compliance can lead to penalties or compounding proceedings. A clear understanding of FEMA regulations helps organizations manage foreign transactions lawfully while maintaining financial stability and regulatory confidence.
Foreign investment plays a crucial role in India’s economic growth. To regulate and streamline cross-border capital flows, the Government of India introduced the Foreign Exchange Management Act (FEMA). FEMA governs foreign exchange transactions and ensures that foreign investments in India…
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