A Bill based on the recommendations of the Task Force, was introduced in the Lok Sabha on 4 August, 98. The Bill was referred to the standing committee on Finance which submitted it's report to the House on 23 December'98 with suggestion and modifications. The 12th Lok Sabha was dissolved before any decision could be taken on the bill. The Bill subsequently lapsed. The bill was again introduced in the 13th Lok Sabha on 25th Oct'99. The presidential Assent was received on 6th Jan 2000. Finally the FEMA came into operation w.e.f. 1st June 2000.
TO WHOM IS THE ACT APPLICABLE
The FEMA, is applicable-
- To the whole of India.
- Any Branch, office and agency, which is situated outside India, but is owned or controlled by a person resident in India.
- Any contravention of provisions of FEMA, by all those, who are covered under above two aspects committed outside India.