The Reserve Bank of India has recently amended the FEMA (Foreign Exchange Management Act) regulation to facilitate foreign investment in derivatives.
About the FEMA:
- Purpose: Consolidates and amends laws related to foreign exchange.
- History: Passed in 1999 to replace the Foreign Exchange Regulation Act (FERA) of 1973.
- Classification: Categorizes foreign exchange transactions into Capital Account and Current Account.
- Objective: Facilitates external trade and payments while promoting the development and maintenance of the foreign exchange market in India.
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