The Government of India earlier by enacting Foreign Exchange Regulation Act, 1947 and later passing of Foreign Exchange Regulation Act, 1973 (FERA) had unsuccessfully tried to control Foreign Exchange but in the foreign Exchange Management Act, 1999 (FEMA) enacted at the time of good foreign exchange position and movements towards liberalized economy the foreign exchange violations are not treated as crime which deserves sentence of imprisonment and only punishment of the fine on higher side was found adequate. The compounding of the violation of foreign exchange is permitted in the manner indicated in relevant Rules and Regulations. Unlike the other important Acts the books on FEMA are generally in the form of guides based on the provisions of the Act, Rules and Regulations framed under it, yearly Master Circular and AP (DIR series) Circulars issued by the Reserve Bank of India from time to time, Foreign Exchange Control Manual of RBI, Life Insurance Memorandum (LIM) of RBI, Memorandum of Exchange Control Regulations relating to General Insurance of India (GIM), Memorandum of Procedure for channelling direction through Asia Clearing Union (ACU), Memorandum of instructions on project and services exports (PEM), etc., with special memorandum of instructions on different aspects of the foreign exchange to achieve foreign exchange management. The present Books commentary on FEMA with emphasis on legal interpretations of words and phrases used in different sections by author`s experience, Higher Courts Interpretations pertaining to the present Act and other Acts besides case law based commentary for the benefit of legal fraternity.
In the present book authors have also made special efforts to coordinate and correlate different provisions of the FEMA with the related Rules and Regulations. Some important AP (DIR series) Circulars are indicated by authors at appropriate places in the relevant provisions of the Act for the benefit of readers of this book. The central idea is that along with the relevant provisions of the Act, the reader should also know the position of the relevant Rules, related Regulations and Circulars to grasp the exact position, by reading them together.