FERA and FEMA
As a developing country which has been planning to quicken the process of its economic growth, India always wanted to use its foreign exchange wisely and judiciously. Even during the British rule, the government legislated measures to control foreign exchange under the Defence of India Rules in 1939. The Indian government of free India used legislative provisions of foreign exchange control to enact her own Foreign Exchange Regulation Act (FERA) in 1947. The basic objectives of the FERA 1947 were the following: It aimed to regulate and control (i) business activities of foreign companies; (ii) the flow of foreign capital, technology and managerial enterprises; and (iii) foreign collaborations. This Act was amended ...