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FOREIGN EXCHANGE FOREIGN EXCHANGE MANAGEMENT ACT, 1999MANAGEMENT ACT, 1999

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ObjectivesObjectives

To facilitate external trade and To facilitate external trade and payments payments

To promote the orderly development To promote the orderly development and maintenance of foreign and maintenance of foreign exchange marketexchange market

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Introduction: -Introduction: -

Foreign exchange transactions were regulated by Foreign exchange transactions were regulated by Foreign exchange regulation act (FERA), 1973Foreign exchange regulation act (FERA), 1973

Following the liberalization ushered in 1991 some Following the liberalization ushered in 1991 some amendments were made to FERA in 1993 there amendments were made to FERA in 1993 there was a lot demand to bring certain major changes was a lot demand to bring certain major changes in FERA in the light of economic changes took in FERA in the light of economic changes took place place

Consequently a new act was formed to replace Consequently a new act was formed to replace FERA, known as Foreign exchange management FERA, known as Foreign exchange management act (FEMA), 1999act (FEMA), 1999

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Section 3 of FEMASection 3 of FEMA

It talks about dealings in foreign exchange and It talks about dealings in foreign exchange and foreign securities and payments to and receipts from foreign securities and payments to and receipts from any person outside India.any person outside India.

The general or special permission of the Reserve The general or special permission of the Reserve Bank of India is required in the following mattersBank of India is required in the following matters

(a)(a) Dealing in any foreign exchange or foreign security Dealing in any foreign exchange or foreign security with any person other than the authorized personwith any person other than the authorized person

(b) Payment to or for the credit of any person resident (b) Payment to or for the credit of any person resident outside India in any manner outside India in any manner

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C) Receiving of any payment by order or C) Receiving of any payment by order or on behalf of any person resident outside on behalf of any person resident outside India in any manner otherwise through an India in any manner otherwise through an authorized personauthorized person

(d) Enter in to any financial transaction in (d) Enter in to any financial transaction in India as a consideration for or in. India as a consideration for or in. association with requisition or creation or association with requisition or creation or transfer of a right to acquire any asset transfer of a right to acquire any asset outside India by any person outside India by any person

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Holding of Foreign ExchangeHolding of Foreign Exchange No person resident in India shall acquire, hold, No person resident in India shall acquire, hold,

own, possess or transfer any foreign own, possess or transfer any foreign exchange/foreign security or any immovable exchange/foreign security or any immovable property situated outside Indiaproperty situated outside India

Current account TransactionsCurrent account Transactions -Act permits dealing in foreign exchange through -Act permits dealing in foreign exchange through

authorized persons for current account authorized persons for current account transactions.transactions.

-Central Government can impose reasonable -Central Government can impose reasonable restrictions in public interest with this regardrestrictions in public interest with this regard

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Capital Account TransactionsCapital Account Transactions Any person may sell or draw foreign exchange to or from an Any person may sell or draw foreign exchange to or from an

authorized person for a capital account transaction permitted by authorized person for a capital account transaction permitted by RBI in consultation with central Government .RBI in consultation with central Government .

RBI prohibits, restricts or regulate the following,RBI prohibits, restricts or regulate the following,

(a)(a) Transfer or issue of any foreign security by a person resident Transfer or issue of any foreign security by a person resident in Indiain India

(b) Transfer or issue of any foreign security by a person resident (b) Transfer or issue of any foreign security by a person resident outside Indiaoutside India

c Transfer or issue of any security or foreign security by any branch, c Transfer or issue of any security or foreign security by any branch, office or agency in India of a person resident outside Indiaoffice or agency in India of a person resident outside India

(d) Any borrowing or lending in foreign exchange in whatever form or (d) Any borrowing or lending in foreign exchange in whatever form or by whatever name calledby whatever name called

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Export of goods and servicesExport of goods and services Every exporter of goods shall fumish to the RBI or to such other Every exporter of goods shall fumish to the RBI or to such other

authority the followingauthority the following

(a)A declaration specified(a)A declaration specified1.1. True and correct material particularsTrue and correct material particulars2.2. Amount representing the value of full export of goodsAmount representing the value of full export of goods3.3. The time of the exportThe time of the export4.4. The value which exporter having regard to the prevailing market The value which exporter having regard to the prevailing market

conditions expects to receive conditions expects to receive on on the sale of the goods in a market the sale of the goods in a market outside Indiaoutside India

(b) Other information(b) Other information--That may be required by RBI for the purpose of ensuring the That may be required by RBI for the purpose of ensuring the

realization of the export proceeds by such exporterrealization of the export proceeds by such exporter- Every exporter of the services shall furnish to the RBI or to such - Every exporter of the services shall furnish to the RBI or to such

other authorities a declaration as specified, containing the true other authorities a declaration as specified, containing the true and correct material particulars in relation to the payment for such and correct material particulars in relation to the payment for such servicesservices

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Realization and Repatriation of foreign Realization and Repatriation of foreign exchangeexchange

Any person in this concern shall have to follow Any person in this concern shall have to follow the reasonable steps to realize and repatriate it the reasonable steps to realize and repatriate it to India with or with in the time in the manner to India with or with in the time in the manner prescribed by the act prescribed by the act

Contravention and penal tiesContravention and penal ties

For any kind of contravention under this act For any kind of contravention under this act defaulter is liable for penalty.defaulter is liable for penalty.

If such contravention is continued further If such contravention is continued further penalty which may extend. penalty which may extend.

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Administration of the ActAdministration of the Act

The rules regulations and norms pertaining to The rules regulations and norms pertaining to many sections are laid down by RBI in many sections are laid down by RBI in consultation with central Government.consultation with central Government.

The Act requires central Government to The Act requires central Government to appoint,appoint,

Adjudicating Authorities for holding enquires Adjudicating Authorities for holding enquires related to the contravention of the Actrelated to the contravention of the Act

One or more Special Directors (appeals) to hear One or more Special Directors (appeals) to hear appeals against the order of the Adjudicating appeals against the order of the Adjudicating authoritiesauthorities

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Central Government shall have to Central Government shall have to establishestablish

1. An Appellate Tribunal for foreign 1. An Appellate Tribunal for foreign Exchange to hear appeals against the Exchange to hear appeals against the order of the Adjudicating Authorities and order of the Adjudicating Authorities and the Special Directorsthe Special Directors

2. A Director of Enforcement with a Director 2. A Director of Enforcement with a Director and such officers or class of officers as it and such officers or class of officers as it thinks fit for taking up for investigation the thinks fit for taking up for investigation the contravention under this Actcontravention under this Act

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How we are Different ?How we are Different ?

StudEase Tutorials was StudEase Tutorials was set up in response to the set up in response to the growing need for nurturing professionals. growing need for nurturing professionals.

Regular Guest Lectures by eminent Company Regular Guest Lectures by eminent Company Secretaries.Secretaries.

World class infrastructure.World class infrastructure. Motivational Lectures.Motivational Lectures. Group Discussion sessions for Professional Group Discussion sessions for Professional

students.students. Presentations.Presentations. Live Trade Exposure.Live Trade Exposure.

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Guest LecturesGuest Lectures

Secretary, DBA Secretary, DBA Official from Securities Exchange Board of India Official from Securities Exchange Board of India

( SEBI )( SEBI ) Official from CRISIL ( Best rating agency in India Official from CRISIL ( Best rating agency in India

)) Company Secretaries with industry experience.Company Secretaries with industry experience. Addl. District Attorney, Patiala.Addl. District Attorney, Patiala. Advocate, Supreme Court of India.Advocate, Supreme Court of India.

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Visits ToVisits To

District Bar AssociationDistrict Bar AssociationConsumer CourtsConsumer CourtsSales Tax CommisionerateSales Tax CommisionerateAnnual General Meeting Vardhman Annual General Meeting Vardhman

Textiles Limited.Textiles Limited.

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RESULTS..RESULTS..

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Results Speak LouderResults Speak Louder

All India Rank 1 CS Foundation 2012All India Rank 1 CS Foundation 2012Best results.Best results.Expert faculty for separate areas of Expert faculty for separate areas of

coverage.coverage.We have associated CA’s , Lawyers , We have associated CA’s , Lawyers ,

CS.CS. Industry exposure.Industry exposure.

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Hindustan Times Article dated 13Hindustan Times Article dated 13thth April,2014April,2014

StudEase – An institute with a difference.StudEase – An institute with a difference. StudEase is linked with the journey of an individual to find StudEase is linked with the journey of an individual to find out the true meaning of Education. This track of quality out the true meaning of Education. This track of quality education has been laid down by diverse skills and education has been laid down by diverse skills and qualification of the founder member of institute Mr. Gagan qualification of the founder member of institute Mr. Gagan Deep Singh ( B.Com, MBA, CS, LLB ).Deep Singh ( B.Com, MBA, CS, LLB ).

The success of the students is inspiring and so is the faith of The success of the students is inspiring and so is the faith of students in StudEase Tutorials which has helped the students in StudEase Tutorials which has helped the institute to emerge as one of the preferred institute for CS institute to emerge as one of the preferred institute for CS coaching in the region. To provide the students with the coaching in the region. To provide the students with the knowledge and practical approach towards the subjects the knowledge and practical approach towards the subjects the institute has started live trading exposure sessions, visit to institute has started live trading exposure sessions, visit to corporates and lectures by guest faculty with industry corporates and lectures by guest faculty with industry experience.experience.

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“ “ We We , at StudEase Tutorials believe , at StudEase Tutorials believe that there is no substitute to that there is no substitute to hardwork, especially if one intends to hardwork, especially if one intends to join India’s premiere corporate join India’s premiere corporate househouse.”.”

The dream of the Director to start an The dream of the Director to start an institute with world class infrastructure institute with world class infrastructure and quality education which helped the and quality education which helped the institute to bag ALL INDIA RANK 1 CS institute to bag ALL INDIA RANK 1 CS Foundation 2012 in the initial year of its Foundation 2012 in the initial year of its set up. The institute has the dedicated set up. The institute has the dedicated team of professionals - CA, CS and team of professionals - CA, CS and Advocates.Advocates.