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Applicability & Commencement of FEMA, 1999 - FEMA Ready Reckoner - FEMAExtract Applicability Commencement of FEMA, 1999 (a) Preamble of this act This Act aim to consolidated and amend the law relating to foreign exchange with the objective of-- a) Facilitating external trade and payment and b) for promoting the orderly development and maintenance of foreign exchange market of India . (b) Extent and Application ( Section 1 of FEMA Act 1999 read with regulation 5 of FEMA (IFSC) Regulation, 2015 ) It extends to the whole of India. In British India Steam Navigation Co. Ltd. vs. Shanmugha Vilas Cashew Industries (1990) 48 ELT 481 (SC) . It was held that foreign ship on high seas, or her foreign owners or their agents in foreign country are not covered under FERA unless foreign ship enters India port ship enters Indin port or territorial waters It shall also apply to all branches, offices and agencies outside India owned or controlled by a person resident in India and also to any contravention there under committed outside India by any person to whom this Act applies. [ Section 1(3) ] Subject to the provisions of Section 1(3) of the FEMA Act 1999, and save as otherwise provided in these Regulations or any other Regulations or directed by the Reserve Bank of India from time to time, nothing contained in any other regulations shall apply to a financial institution or branch of a financial institution set up in an IFSC. The scope of the act has been extended to include branch, office and agencies outside India. The scope is thus wide enough because the emphasis is on the words owned or Controlled . contravention of the FEMA committed outside India by a person to whom this act applies will also be covered FEMA (c) Commencement The FEMA Act,1999 came into force with effect from 1st Jun, 2000 vide Notification G.S.R. 371(E), dated 01.05.2000 . The proviso to section 1(4) states that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. (d) It is a civil law enacted to consolidate and amend the laws relating to facilitate external trade and payments and to promote the orderly development and maintenance of foreign exchange market in India.
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