The Foreign Exchange Management Act, 1999 (FEMA) provides for a number of special provisions relating to assets held outside India. These provisions are designed to facilitate the acquisition, holding, and disposal of assets held outside India by residents of India.
Some of the special provisions relating to assets held outside India include:
- Residents of India are allowed to acquire, hold, and dispose of assets held outside India, subject to certain restrictions.
- Residents of India are allowed to remit foreign exchange outside India for the purpose of acquiring, holding, and disposing of assets held outside India, subject to certain restrictions.
- The RBI may, in public interest, impose additional restrictions on the acquisition, holding, and disposal of assets held outside India by residents of India.
The following are some of the restrictions on the acquisition, holding, and disposal of assets held outside India by residents of India:
- Residents of India are not allowed to acquire assets held outside India without the prior permission of the RBI.
- Residents of India are not allowed to hold assets held outside India in excess of certain limits.
- Residents of India are not allowed to dispose of assets held outside India without the prior permission of the RBI.
The RBI may impose additional restrictions on the acquisition, holding, and disposal of assets held outside India by residents of India, if it feels that these are necessary to protect the interests of the Indian economy.
MCQs on Special Provisions relating to Assets held outside India as per Foreign Exchange Management Act, 1999
- Which of the following is a special provision relating to assets held outside India under the FEMA?
- Residents of India are allowed to acquire, hold, and dispose of assets held outside India, subject to certain restrictions.
- Residents of India are allowed to remit foreign exchange outside India for the purpose of acquiring, holding, and disposing of assets held outside India, subject to certain restrictions.
- The RBI may, in public interest, impose additional restrictions on the acquisition, holding, and disposal of assets held outside India by residents of India.
- All of the above.
The answer is (d). All of the above are special provisions relating to assets held outside India under the FEMA.
- What are the restrictions on the acquisition, holding, and disposal of assets held outside India by residents of India?
- Residents of India are not allowed to acquire assets held outside India without the prior permission of the RBI.
- Residents of India are not allowed to hold assets held outside India in excess of certain limits.
- Residents of India are not allowed to dispose of assets held outside India without the prior permission of the RBI.
- All of the above.
The answer is (d). All of the above are restrictions on the acquisition, holding, and disposal of assets held outside India by residents of India.
- Who can impose additional restrictions on the acquisition, holding, and disposal of assets held outside India by residents of India?
- The RBI.
- The Central Government.
- The Supreme Court.
- The High Court.
The answer is (a). The RBI can impose additional restrictions on the acquisition, holding, and disposal of assets held outside India by residents of India.