IIBF Forex For Individuals Practice Questions - IIBF Certificate In Foreign Exchange Facilities For Individuals (India) Exam

What is the primary structural philosophy change from FERA (1973) to FEMA (1999)?

FEMA introduced stricter criminal prosecution and imprisonment for all forex violations. FEMA transitioned the regulatory framework from 'control and conservation' of foreign exchange to 'facilitation' of trade and payments with civil penalties. FEMA restricted all capital account transactions and banned foreign direct investment. FEMA removed all roles of the Reserve Bank of India in managing foreign exchange.

Correct Answer:

FEMA transitioned the regulatory framework from 'control and conservation' of foreign exchange to 'facilitation' of trade and payments with civil penalties.

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