Fema & Consumer Protection Act

Topics: Pleading, Foreign exchange market, Consumer protection Pages: 3 (574 words) Published: February 20, 2012
FEMA & consumer Protection Act
When a business enterprise imports goods from other countries, exports its products to them or makes investments abroad, it deals in foreign exchange. In the light of economic reforms and the liberalized scenario, FERA was replaced by a new Act called the Foreign Exchange Management Act (FEMA), 1999.The Act applies to all branches, offices and agencies outside India, owned or controlled by a person resident in India. FEMA emerged as an investor friendly legislation which is purely a civil legislation in the sense that its violation implies only payment of monetary penalties and fines. The objectives of FEMA are:

(i) To Main objective of apply FEMA is to reduce the restriction on foreign exchange. Now, any offense in foreign exchange will be civil offense not criminal offense. (ii) To promote the orderly development and maintenance of foreign exchange market. (To increase the flow of foreign exchange) The Act has assigned an important role to the Reserve Bank of India (RBI) in the administration of FEMA. The rules, regulations and norms pertaining to several sections of the Act are laid down by the Reserve Bank of India, in consultation with the Central Government.


Consumer protection is essential for a healthy economy. We need Consumer Protection Act for the following:-

* Physical protection of the consumer.
* Protection against deceptive and unfair trade practices. * Protection against all types of pollution.
* Protection against the abuse of monopoly position and/or restrictive trade practices. * Protection of enjoying the rights.

The consumer interest in the market place is the focus or the art of enlightened marketing mix. The business and consumerism both aim at the protection of consumer interest-business through self-regulation and consumerism through self-help. Consumerism invokes government assistance when business misbehaves and fails to...
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