The Foreign Exchange Management Act, 1999 (In short FEMA ) deals primarily with the provisions relating to cross-border trade and payments thereof. It defines the procedures, formalities, dealings of all foreign exchange transactions in India.
FEMA has been introduced as a replacement of earlier Foreign Exchange Regulation Act (FERA) to take care of  post-liberalisation policies.
FEMA head office is known as Enforcement Directorate and is situated in  Delhi.

OBJECTIVE

The main objective of FEMA was to help facilitate external trade and payments in India ; but also has following secondary objectives: -

1. To help orderly development and maintenance of foreign exchange market in India.
2. To facilitate transactions involving foreign exchange or foreign security and payments from outside the country to India only through an authorised person.
3. To encourage dealings in foreign exchange under the current account through an authorised person and to keep restrictions with the help of Central Government, based on public interest.
4. To authorise Reserve Bank of India to subject the capital account transactions to a number of restrictions.
5. To carry out transactions in foreign exchange by residents of India, foreign security or to own or hold immovable property abroad if the currency, security or property was owned or acquired when resident was living outside India, or when it was inherited by that resident from someone living outside India.

ANNUAL RETURNS TO BE FILED UNDER FEMA

Foreign Liabilities and Assets (FLA Return):
In order to capture the statistics relating to (FDI) Foreign Direct Investments and (ODI) Overseas Direct Investments in a more comprehensive manner as also to align it with international best practices, Reserve Bank of India has introduced the requirement to file Annual Return on Foreign Liabilities and Assets (‘FLA Return’) on or before 15 July every year.

Annual Performance Report (APR): 
An Indian Party (IP) / Resident Individual (RI) which has made an Overseas Direct Investment (ODI) has to submit an APR in Form ODI Part II to the AD bank by 31 December every year in respect of each Joint Venture (JV) / Wholly Owned Subsidiary (WOS) outside India.

ENACTMENTS AND REGULATIONS COVERED UNDER FEMA

1. Foreign Contribution (Regulation) Act, 2010 and Foreign Contribution (Regulation) Rules, 2011- 
2. Transfer or Issue of any Foreign Security Regulations-2000
3. Withdrawal of General Permission to Overseas Corporate Bodies Regulations-2003.
4. Offshore Banking Unit Regulations-2002.
5. Encashment of Draft Cheque Instrument and Payment of Interest Rules-2000.
6. Current Account Transactions Rules-2000- Regulating the current account transactions involving foreign exchange
7. Adjudication Proceedings and Appeal Rules-2000- States procedures in case of adjudication and appeal proceedings involving any foreign exchange transaction.
8. Permissible Capital Account Transactions Regulations-2000- Regulating the capital account transactions involving foreign exchange.
9. Borrowing or Lending in Foreign Exchange Regulations-2000- Regulating overseas transactions borrowing and lending in foreign exchange.
10. Borrowing and Lending in Rupees Regulations-2000- Regulating transaction’s involving borrowing and lending in rupees.
11. Deposit Regulations-2000- Defines procedures relating to deposits between person resident in India and a person resident outside India.
12. Export and Import of Currency Regulations-2014- Regulates inflow and outflow of foreign currency
13. Acquisition and Transfer of Immovable Property Outside India Regulations-2000- Regulates the transactions involving transfer or acquisition of any Immovable property outside India.
14. Foreign Exchange Management (Guarantee) (Fourth Amendment) Regulations, 2013- Regulating the provisions relating to guarantees to be provided by the person resident in India or acting as a surety to any transactions involving foreign exchange.
15. Realization Repatriation and Surrender of Foreign Exchange Regulations-2015- Regulating the realisation and repatriation of foreign exchange by the person resident in India.
16. Possession and Retention of Foreign Currency Regulations-2015- Regulates the possession and retention of foreign currency by any person who is resident of India.
17. Insurance Regulations-2015- Regulates the provisions relating to General /Health Insurance and payment of premium thereof in foreign exchange
18. Remittance of Assets Regulations-2016- Regulates Remittances outside India of assets in India by a person whether resident in India or not.
19. Manner of Receipt and Payment Regulations-2000- Regulates the manner of receipt and payment of foreign exchange.
20. Establishment in India of Branch or Office or other Place of Business Regulations-2000- Regulates the provisions relating to establishment of a branch office or other place of business in India.
21. Export of Goods and Services Regulations-2000- Regulates the flow of goods and services outside India.
22. Investment in Firm or Proprietary Concern in India Regulations-2000- Regulates the investments in firms and proprietary concerns in India
23. Foreign Exchange Derivative Contracts Regulations-2000- Deals with the derivatives contracts involving foreign exchange.