Foreign Exchange Management Act, 1999

The Foreign Exchange Management (Act No. 42 of 1999) (FEMA) of India was enacted on 29 December 1999 and came into force on 1 June 2000.

The Parliament has enacted the Foreign Exchange Management Act, 1999 to replace the Foreign Exchange Regulation Act, 1973 (FERA). To investigate provisions of the Act, the Central Government has established the Directorate of Enforcement.

The object of the Act is to consolidate and amend the law relating to foreign exchange with objective of facilitating external trade and payments and for promoting the orderly developnent and maintenance of foreign exchange market in India.