FEMA or Foreign Exchange Regulations Act, 1999.: The object of the Act is to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India.
PMLA or Prevention of Money Laundering Act, 2002.: Along with Rules defines offenses of money laundering as whosoever attempts to indulge directly or indirectly in activity connected with the proceeds of crime and projecting it as untainted property shall be guilty of offense of money-laundering. The act also requires every banking company to furnish details of suspicious transactions whether or not made in cash.
SEBI or Securities & Exchange Board of India.: The Preamble of the SEBI describes the basic functions of the Securities and Exchange Board of India as “to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected with or incidental there to”. SEBI has to be responsive to the needs of three groups, which constitute the market: a) issuers of securities b) investors c) market intermediaries.
FDI or Foreign Direct Investments.: A FDI is an investment in the form of controlled ownership in a business in another country. FDI into India is hence investments by foreign companies in Indian businesses . There are two routes by which India gets FDI. 1. Automatic route: By this route FDI is allowed without prior approval by Government or RBI. 2. Government route: Prior approval by government is needed via this route.
