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Answer Posted / lakshmi v.p
FEATURES OF FEMA.
. It will facilitate trade rather than prevent misuse of
foreign exchange.
· Definitions of capital account transaction and current
account transaction have been introduced keeping in mind the
possibility of introduction of capital account
convertibility in the near future.
· All current account transactions shall be allowed
(subject to reasonable restrictions). Reserve Bank to
classify those capital account transactions that are to be
permitted and to regulate transfer and issue of foreign
securities by a resident in/outside India as well as setting
up of branches/offices by foreign companies in India.
· All key sections relating to dealings, holding and
payments in foreign exchange and exports have been simplified.
· Liberalization in enforcement provisions reflects that
the attitude is of putting trust in the persons covered
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