Foreign Exchange Management Act, 1999 (FEMA) is an Act which was introduced to regulate the Foreign Exchange inflow and outflow in India for promoting and securing the foreign investment and foreign exchange market in the country.
FEMA is applicable to all parts of India. The act is also applicable to all branches, offices and agencies outside India owned or controlled by a person who is a resident of India.
Under the Act, there are various requirements which needs to be complied with at the time of Foreign Investments.
All such activities requires some compliance under FEMA to be complied with from time to time as prescribed under the Act.
RBI has recently announced the introduction of Single Master Form (SMF) with the objective of integrating the extant reporting structures of various types of foreign investment in India.