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FEMA Permits only authorised person to deal in foreign exchange or foreign security. Such an authorised person, under the Act, means authorised dealer,money changer, off-shore banking unit or any other person for the time being authorised by Reserve Bank. The Act thus prohibits any person who:-

§  Deal in or transfer any foreign exchange or foreign security to any person not being an authorized person;


§  Make any payment to or for the credit of any person resident outside India in any manner;


§  Receive otherwise through an authorized person, any payment by order or on behalf of any person resident outside India in any manner;


§  Enter into any financial transaction in India as consideration for or in association with acquisition or creation or transfer of a right to acquire, any asset outside India by any person is resident in India which acquire, hold, own, possess or transfer any foreign exchange, foreign security or any immovable property situated outside India.

The Act deals with two types of foreign exchange transactions.

Reserve Bank of India
Foreign Exchange Management Act (FEMA),1999
FAQs on Foreign Exchange Management Act, 1999
Foreign Exchange Management (Current Account Transactions) (Amendment) Rules, 2001
FEMA Notifications
Forms related to FEMA
A.P. (DIR Series) Circulars of FEMA
Electronic Reporting System
FEMA Rules
FEMA Regulations


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