The Foreign Exchange Management Act (FEMA), enacted in 1999, is a cornerstone of India’s regulatory framework governing foreign exchange transactions.
It plays a vital role in overseeing how individuals and businesses manage foreign investments, international payments, and capital flows within the country.
FEMA compliance is mandatory for all entities involved in cross-border trade or foreign direct investment (FDI), ensuring that these transactions align with the guidelines set by the Reserve Bank of India (RBI).