ADVOCATES FOR FOREIGN EXCHANGE REGULATION ACT (FERA)
Foreign Exchange Regulation Act in short is FERA. This Act got enacted in 1973 on the whole. Of Course. This act imposes strict regulations on given these points:
- Certain nature of payments,
- Certain foreign exchange and securities dealings
- Transactions that have indirect impact on foreign exchange
- Transactions that have indirect impact on import and export of currency.
Top advocates for Foreign Exchange Regulation Act (FERA)
FERA was later replaced by FEMA. Meanwhile, this act applied to all Indian citizens all over India. The main aim of FERA was to regulate foreign payment in the long run. Further it aimed to regulate foreign exchange securities dealing. It aimed also to conserve nation’s Forex. Contact our advocate Saravvanan Rajendran law associates attorneys in Chennai to solve issues in Foreign Exchange Regulation Act (FERA).
Enforcement officers have different roles in foreign exchange enforcement. The following are the officers of FERA:
Director of Enforcement
- Deputy Director of Enforcement
- Assistant Director of Enforcement
Enforcement officers got appointed by the Central Government. Their powers and duties limits to FERA here and there.
Keys features of FERA
- RBI can approve a foreign exchange dealing of a person / company
- RBI can approve dealers to transact Foreign Currencies, subject to review sooner or later. In case of non-compliancy it has powers to revoke.
- RBI could approve Money Changers. They convert currency of one nation to other at RBI rates.
- Only authorized dealer can enter into foreign currency dealing.
- A person has to use foreign exchange for the borrowed purpose only. In case if he is unable to use for that purpose, then he has to sell it an authorized dealer within 30 days.
- No person in India can make payments outside India without RBI permission. On the positive side, No person in India can receive money from outside India without RBI Permission
- No person can draw/ issue/negotiate any bill of exchange which has payment rights outside India.
- No person can make credit to a person’s account out of India.
- RBI only can authorize persons who can send foreign currency outside India.
- A person with forex receipt rights should not delay receipt of forex.
Foreign Exchange Regulation Act has overall powers to do “anything and everything” about foreign exchange. It is a draconian act that hindered growth and modernization of India. After liberalization FERA indeed got replaced by FEMA. There was shift of focus from control to management of foreign exchange.
Rules and restrictions followed by RBI for Foreign Exchange Regulation Act (FERA)
- Restraint on illegal payments
- Restraint on foreign exchange dealing
- Exported goods payments are as per RBI
- Restraint on giving bearer securities
- Restraint settling in other country
- Foreign professionals need permission from RBI to practice in India
- Restraint on owning immovable property outside India
- Restraint on appointment of persons/companies as FOREX agents
- RBI demands info from a person on Indian currency, Forex exchange and books of account.
- Restraint on establishing business place in India
- Power to search suspected persons and to seize documents
- Restraint on foreigners acquisition or holding immovable property in India
- Restraint on export & import of certain currency
Key Differences between FERA and FEMA
FERA got replaced by FEMA post liberalization and globalization of our country. The main differences between FERA and FEMA
- Foreign Exchange Regulation Act is an act that regulates payments and foreign exchange in India. FEMA is an act initiated help external trade and payments. In fact, It aims to promote orderly management of the India’s Forex market
- FEMA is an extension of FERA, the earlier foreign exchange act
- FERA is of more length and has got more sections than FEMA.
- Mainly, FERA came into effect when forex reserve position of India was not good. Where as FEMA came into effect when forex was satisfactory
- FERA has conservative and restrictive approach towards forex by all means. Whereas FEMA has flexible approach towards forex.
- To point out, Violation of FERA is a non-compoundable offence. Violation of FEMA violation is a compoundable offence. FEMA charges are removable.
- In FERA residential status of a person was been determined by Citizenship of a person in the first place. Whereas in FEMA a person’s stay in India should not be less than 6 months to learn residential status.
- Breach of this act provisions results in imprisonment in conclusion. Punishment for violating FEMA is a monetary penalty in due time. If penalty not paid, it leads to imprisonment in the meantime.
The liberalization policy got first time introduced in India in the year 1991. It opened gates for foreign investment in many sectors. Later on after various committee suggestions FERA got replaced by FEMA
Legal services for FERA OR FEMA issues in Chennai
- Senior attorneys in our Law firm Offer advisory services on foreign investments by Indian nationals in the final analysis
- Legal Consultants in our law firm at Chennai offer advisory services on investment in India by foreign nationals from time to time.
- At the same time, Advocates in Chennai high court at our Law office prepare reply to show cause notices or enforcement director memo.
- In the light of fact, Our Civil lawyers represent you before various enforcement authorities
High court advocates in our Law firm file your applications with RBI for compounding offences in brief.
Best advocates in Chennai for Foreign Exchange Regulation Act (FERA)
Advocate saravvanan Rajendran law associates offer best of legal services to all our clients in essence. Of course, Our FERA attorneys in Chennai intend to lay all your discrepancies and disputes with FERA/FEMA. Contact our Foreign Exchange advocates in Chennai today in case you have any queries about FEMA/FERA. Above all, Lawyers specializing in FERA cases will be happy to assist you.