The Foreign Exchange Regulation Act - 1954 Words

The Foreign Exchange Regulation Act or FERA, passed by the Parliament in 1973, was framed to eradicate crimes relating to foreign exchange in the country , such that the economic development, which was still in its pre-liberalization era and thus slow, was not adversely affected. It was also to preserve the scarce Forex or foreign exchange currency in the country and hence tried to keep a strict control on these particular resources. However, it was repealed and replaced by the Foreign Exchange Management Act (1999) to reinforce and fortify the development and the maintenance of the foreign exchange resources in the country. It was more extensive, comprehensive and since the floodgates of the economy had opened after liberalization in 1991, had more scope to actually reinvigorate the availability of foreign exchange in the country. This act, in essence, was formed to keep in check the foreign exchange resources in the country and hence all business deals involving foreign exchange need to be authorized by the Government. It is drastic in nature as it does not allow arbitrary trade in foreign exchange of any form, as this is a resource that needs to be willfully protected. Under this Act, Lalit Modi had performed a number of violations. He accepted a deposit of â‚ ¹ 200 million from UK-based Emerging Media (IPL), in contravention of FEMA, where other BCCI officials were also involved. He also contravened the provisions of Foreign Exchange Management Act (FEMA) to theShow MoreRelatedRegulation Of Foreign Investment On China1235 Words   |  5 PagesRegulation of foreign investment in China Foreign investment in china has been adversely affected by the global economic and financial crisis since 2008. In the first 6 months of the year 2009, foreign investment in china dropped by 17.9%. 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