https://v2.webnotes.in/categories/foreign-exchange/Recent content in Foreign Exchange on WebNotesHugoen-INSat, 16 May 2026 00:00:00 +0000https://v2.webnotes.in/fema/Sat, 16 May 2026 00:00:00 +0000https://v2.webnotes.in/fema/<p>The <strong>Foreign Exchange Management Act, 1999</strong> (FEMA) is the principal Indian statute regulating foreign-exchange transactions, cross-border capital flows, and the broader external-sector framework. FEMA replaced the predecessor <strong>Foreign Exchange Regulation Act, 1973</strong> (FERA) with effect from <strong>1 June 2000</strong>, marking a structural shift from a prohibitive <strong>regulation</strong> framework to a permissive <strong>management</strong> framework. The change of nomenclature was substantive: FERA had treated foreign-exchange transactions as presumptively illegal except where expressly permitted, while FEMA treats foreign-exchange transactions as presumptively permitted except where expressly restricted.</p>