Foreign Exchange Management Act

The Foreign Exchange Management Act (FEMA) is an Indian law that regulates foreign exchange transactions and cross-border financial flows. Its purpose is to facilitate easy and lawful foreign exchange dealings while maintaining India’s economic stability and security. FEMA sets rules for individuals, businesses, and institutions on how they can buy, sell, or transfer foreign currency and assets. It aims to promote transparency, prevent illegal activities like money laundering, and ensure the country’s financial system remains healthy. Overall, FEMA helps manage international trade and investment in a systematic, controlled manner.