Page 85 - Quick Insights Book 2022

24 Other Laws

1. FOREIGN EXCHANGE MANAGEMENT ACT, 1999

The Foreign Exchange Management Act, 1999 extends to the
whole of India. The Act also applies to all branches, offices and
agencies outside India owned or controlled by a person resident
in India and also to any contravention thereunder committed
outside India by any person to whom this Act applies.

With the advent of FEMA, the entire focus of the government
of India and the Reserve Bank of India shifted to control and
management of foreign investments and flow of funds to
suit the best interests of the country. Though there is almost
complete convertibility on Current Account Transactions except
few prohibited/restricted items under the Current Account
Regulations, the Reserve Bank of India has been consciously
regulating the flow of Capital Account Transactions (both
inbound as well as outbound) on real time basis to meet the
goals of canalizing investment towards desired sectors of the
economy and simultaneously addressing issue of the national
security.

Professional opportunities in this area include:
Consultancy on compliances under FEMA rules and
regulations

 Representation before Authorities under the provisions
of section 32 of FEMA a person preferring an appeal
to the Appellate Tribunal may take the assistance of a
legal practitioner or a Chartered Accountant of his choice
to present his case before the Appellate Tribunal or the
Special Director (Appeals), as the case may be. Further
the Central Government may authorize one or more legal
practitioners or a Chartered Accountants or any of its
officers to act as presenting officers and every person Other Laws
so authorized may present the case with respect to
any appeal before the Appellate Tribunal or the Special
Director (Appeals), as may be.

 Interpretation of FEMA Rules, Regulations , Master
Circulars and Other allied acts.

 Certification requirements under various relevant
notification under FEMA.

 Maintaining check on regular current compliance and
risk analysis of past compliances

 Return to be filed by Issuer/Transferor who has arranged
issue/transfer of Depository Receipts (Form DRR).

72 Quick Insights on Professional Opportunities for Chartered Accountants