Why was Foreign Exchange Management Act, 1999 enacted? What are the key aspects dealt under the Foreign Exchange Management Act ?

The Foreign Exchange Management Act, 1999 (FEMA) was enacted 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. In fact, it is the central legislation that deals with inbound investments into India and outbound investments from India and trade and business between India and the other countries. FEMA Provides - Free Transactions on Current Account subject to reasonable restrictions that may be imposed. Capital Account Transactions. Realization of Export Proceeds Dealings in Foreign Exchange through Authorized Person (e.g., Authorized Dealer/Money Changer/Off-shore Banking Unit Adjudication of Offences – Appeal Provisions including Special Director (Appeals) and Appellate Tribunal & High Court