What is the full form of FEMA
FEMA: Foreign Exchange Management Act
FEMA stands for Foreign Exchange Management Act. It was introduced to replace the earlier Foreign Exchange Regulation Act (FERA) as FERA was not compatible with post-liberalisation policies. FEMA was passed in the winter session of Parliament in 1999. It became an act on 1 June 2000. According to this act, all offenses related to foreign exchange are civil offenses as opposed to criminal offenses according to FERA.
Its head office which is called Enforcement Directorate is located in New Delhi. It has five zonal offices which are located in Delhi, Mumbai, Chennai, Kolkata and Jalandhar. Each zonal office is headed by the Deputy Director. Each Zone is further divided into 7 sub-zonal offices and 5 field units. The sub-zonal office is headed by Assistant Director and the field unit is headed by Chief Enforcement Officer.
The key objective of the FEMA is to consolidate and amend the laws related to foreign exchange to facilitate external trade and payments. The other objective for which it is formulated is to promote the orderly development and maintenance of foreign exchange market in India. FEMA is applicable throughout the India. It is also applicable to all offices, agencies which are outside India but owned or controlled by a person who is a citizen of India.