The Foreign Exchange Management Act in India
- The 1999 act (FEMA) was meant as a replacement for the pre-existing Foreign Exchange Regulation Act, which had been in place since 1973. The Indian government felt a need for a "consolidation" of practices with regard to foreign exchange as well as the need to make it easier for foreign currency to be used in trade
Outreach of the Act
- The act was considered in effect for every person in the state of India. It applied to all organizations, business, and agencies found within the country. Also, all internationally-located institutions run by "residents" of India fell under its oversight.
- The chief authoritative body with regard to FEMA is the Enforcement Directorate, which is located in the capital of New Delhi. It then delegates down to five different "zonal offices" found within some of the largest cities throughout India. They include Mumbai, Madras, Calcutta, Jalandhar and Delhi.