Foreign Exchange Management Act
Foreign Exchange Management Act is the process of limiting a company’s exposure to foreign currency fluctuations. In most cases, this is done by companies that engage in foreign trade. Foreign exchange, or forex, is the conversion of one country’s currency into another. In other words, a currency’s value can be pegged to another country’s currency, such as the U.S. dollar, or even to a basket of currencies. 1 A country’s currency value may also be set by the country’s government.
What is Foreign Exchange?
- Investopedia defines “Foreign Exchange (forex or FX) as the trading of one currency for another.”
- Foreign Exchange (forex or FX) is a global market for exchanging national currencies with one another.
- The Exchange venues comprise the largest securities market in the world by nominal value, with trillions of dollars changing hands each day.
- Foreign exchange trading utilizes currency pairs, priced in terms of one versus the other.
- Forwards and futures are another way to participate in the forex market.
What is Foreign Exchange Management Act, 1999?
The Foreign Exchange Management Act, 1999 (FEMA) is an Act of the Parliament of India “to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India”.
Applicability of FEMA (Foreign Exchange Management Act)
FEMA (Foreign Exchange Management Act) is appropriate to the entire of India. And pertinent to the offices and workplaces situated outside India. The administrative center of FEMA is arranged in New Delhi. It is known as Enforcement Directorate.
Foreign Exchange laws / Foreign Exchange Management Act are /is one of the most stringent law of the country and are /is subject to changes at rapid pace. As an organization, it is necessary to make sure that all your transactions related to foreign exchanges are in compliance with law and if not, necessary precautionary measures shall be undertaken to rectify the same.
Please contact the best lawyers in Delhi for all transactions, inbound & outbound, undertaken during the period under scrutiny from the point of compliance with foreign exchange laws and provides required FEMA Advisory including remedial measures, in case of any deficiency.
LEGALLANDS FEMA Attorneys for Appeals and Representations
Our FEMA Attorneys and Solicitor’s Legal services include Appeals and representation before the Court FEMA and ED in the case of gross violation of the provisions of the FEMA and in terms of money laundering.
We provide Legal Supports in the following:
- RBI for Compounding Legal Assistance
- ED in Prosecution Matter Litigation Services
- FEMA Tribunals Appeals & Representation
- ED Legal Guidance & Litigation
- Appeals Before Tribunal