What Is The Foreign Exchange Regulation Act Of 1973?

The Foreign Exchange Regulation Act of 1973 is an act which was by the Parliament of India in the year 1973, which was the twenty-third year since India became a republic. The objectives of the Foreign Exchange Regulation Act of 1973 were to consolidate and amend the law which existed during the time.

The law which was in existence at the time imposed stringent regulations on certain kinds of payments, the dealings in foreign exchange and securities and the transactions which had an indirect impact on the foreign exchange and the import and export of currency.

The Foreign Exchange Regulation Act of 1973, which is commonly known by its abbreviation (FERA, 1973), was established for the purposes of conservation of India's foreign exchange resources and the proper utilisation of India's foreign exchange resources. This act was passed in Parliament keeping in mind the best interests of the economic development of India.