A Non-resident Indian, i.e. an NRI -investing in India or having any type of business connection in India and having any income in India has not only to know the salient aspects of the Income Tax Act, 1961 but has also to be conversant with the law relating to the regulation of foreign exchange in India. The latest law in this regard is known as Foreign Exchange Management Act, 1999, which has replaced the earlier law known as FERA, 1973. The new FEMA, 1999 came into force with effect from 1.6.2000. In this chapter we have discussed certain preliminary aspects of FEMA, like the main enactment and connected Rules, Regulations, Notifications and the Reserve sank Circulars, etc. along with salient aspects of FEMA in contradistinction to FERA. The detailed aspects of FEMA as relevant for the NRIs in relation to various matters like investment in immovable property in India, making various types of deposits in India, investment in shares, units and other securities and various other investments has been discussed. Please look for the latest up date in the Exchange Control Manual or Circulars issued by Reserve Bank of India.
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