Fema

Foreign Exchange Regulation Act (FERA) 1973 As per interference 29., all non-banking inappropriate branches and subsidiaries with conflicting fair-mindedness exceeding 40 per cent had to obtain permission to establish new undertakings, to regain sections in existing companies, or to acquire wholly or partly any other play along; tout ensemble international companies or branches to convert as Indian companies with token(prenominal) 60% local equity; All foreign companies or branches to earn d give foreign equity share to 40% or less; Three level of foreign equity (1976): 74%, 51% and 40 % Companies allowed to retain foreign equity realiseings in a higher place 40% and up to 74% if engaged in: - shopping heart and soul industries - Predominantly export oriented production - Activities requiring sophisticated engine room or specialized skills - Tea plantation activity Companies were allowed up to 74% F.E., If, the turnover of above all combined acti vities or any of the above activities exceeded 75% of the total turnover of the caller-out; The same rule applied to the companies exporting 40% of their own production. Implementation of FERA Substantial delays in utensilation; Large frame of companies did non implement guidelines; Govt. exempted some companies; 249 companies exempted by Govt. from 40% non-resident hobby engagement; 132 companies were allowed with more than 40% f. equity; 116 companies were allowed with more than 51% and up to 74% F.E. One company was allowed with 100% F.E.; Companies which did not implement FERA belonged to Tea Plantation, Manufacturing of drugs and pharma products or were affiliated to bombastic TNCs. naked as a jaybird Concession to FERA Companies New concessions announced in Nov.,1991, Jan., 1992 and Jan., 1993; removed medium-large number of restrictions on FERA companies with more than 40% Non-resident equity; remote FERA controls on Indian firms establishing J.Vs. abroad and allowed Indian! firms to hold immovable property abroad; Companies with Foreign...If you want to get a wide-eyed essay, order it on our website: OrderEssay.net

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