FEMA/FERA

The Foreign Exchange Management Act, 1999 (FEMA) is an Act of the Parliament of India “to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India”. The main aim of the act was to smoothen the foreign trade and payments and to maintain and develop the Indian forex market. FEMA chalks out the formalities required and the procedures followed in the foreign exchange transactions in India. These foreign exchange transactions have been classified into two categories i.e. Capital Account Transactions and Current Account Transactions. Capital Account comprises all capital transactions whereas Current Account comprises trade of merchandise.

This act is applicable to foreign exchange, foreign security, export of any commodity and/or service from India to a country outside India, import of any commodity and/or services from outside India, securities as defined under Public Debt Act 1994, purchase, sale and exchange of any kind, banking, financial and insurance services etc. As the paradigm shift to the increase of cross-border transactions, i.e. both inbound & outbound, there is a dire necessity to understand & ensure compliance. We, at Alt-F analyse the transactions of the client and scrutinize whether the compliance of Foreign Exchange Management Act has been done properly and provide Forex transaction advisory / FEMA Advisory accordingly.

We conduct not only the regular compliance check-ups but also ensure that the compliances if omitted be rectified and draw a proper check list for all future transactions. Our team is always updated with the changes in the rules and regulations of foreign exchange market and so can actively provide various inputs and valuable advice to its clients. Further, any contravention, under FEMA, may invite following kinds of penalties like if, the amount against which offence is quantified, and then penalty will be “THRICE” the sum involved in contravention. Where the amount cannot be quantified the penalty may be imposed upto two lakh rupees where such contravention is a continuing one, further penalty which may extend to five thousand rupees for every day after the first day during which the contravention continues .Further in addition to the penalty, any currency, security or other money or property involved in the contravention may also be confiscated. We at Alt-F Business Solutions manage all the phases of the litigation which arise out of the disputes comprehensively. We provide end to end solutions to our clients starting from the issuance of show cause notice to the appellate stage, i.e. upto the Supreme Court. Our services can vary based on the nature of the dispute. With an outstanding team of competent and experienced lawyers with convincing skills, Alt-F is a one stop solution to all your legal troubles.