Commentary on the Foreign Exchange Management Act

Initially, the Foreign Exchange Regulation Act, 1947, and later, the Foreign Exchange Regulation
Act, 1973 (FERA) were enacted to control foreign exchange and for conservation of foreign
exchange resources of the country and proper utilisation thereof in the interest of economic
development of the country. But the desired results to control foreign exchange and to maintain
a healthy balance of payment position of the country could not be achieved. Hence, the present
Commentary on the Foreign Exchange Management Act comprehensively deals with the law
and its various provisions that regulate foreign exchange in India. In addition to providing case
law based commentary, emphasis has been laid on legal interpretation of words and phrases, and
special efforts have been made to correlate different provisions of the FEMA with the related
Rules and Regulations.