Foreign Exchange Management Act, 1999 (FEMA)

Our venture started with a view to provide one window solution for end-to-end FEMA (Foreign Exchange Management Act) consultancy services in India that are sure to go beyond the expectations of the clients.

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We offer FEMA & RBI consultancy that encompasses the entire gamut of foreign exchange law. Looking forward to serve you.

Applicability of FEMA Act

FEMA (Foreign Exchange Management Act) is applicable to the whole of India and equally applicable to the agencies and offices located outside India (which are owned or managed by an Indian Citizen). The head office of FEMA is situated at New Delhi and known as Enforcement Directorate. FEMA is applicable to:

Foreign exchange
Foreign security
Purchase, sale & exchange
Banking, financial & insurance services
Any citizen of India, residing in the country or outside (NRI)
Securities as defined under Public Debt Act 1994

Objectives of FEMA

The main objective for which FEMA was introduced in Indian was to facilitate external trade and payments. In addition to this, FEMA was also formulated to assist orderly development and maintenance of the Indian forex market. FEMA outlines the formalities and procedures for the dealings of all foreign exchange transactions in India. These foreign exchange transactions have been classified into two categories — Capital Account Transactions and Current Account Transactions.


Under the FEMA Act, the balance of payment is the record of dealings between the citizen of different countries in goods, services and assets. It is mainly divided into two categories, i.e. Capital Account and Current Account. Capital Account comprises all capital transactions whereas Current Account comprises trade of merchandise.

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