20441590-Sebi-and-Fema-Act-Final-1

SEBI and FEMA Act: 

SIMSR MFM Ist SEM 1 SEBI and FEMA Act ANOOP K SRIVASTAVA ANURAG MANGAIN HARDIK GANDHI RONAK PANCHAL SACHIN MOGHE VINAYAK DAVE

FOREIGN EXCHANGE MANAGEMENT ACT 1999: 

SIMSR MFM Ist SEM 2 FOREIGN EXCHANGE MANAGEMENT ACT 1999 INTRODUCTION HISTORY GENERAL INFORMATION PROVISIONS AND OPERATIONAL RESPONSIBILITY ENFORCEMENT DIRECTORATE ALLIED ACTS MAIN OBJECTIVES CASE STUDIES

Introduction to FEMA: 

SIMSR MFM Ist SEM 3 Introduction to FEMA The objective 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.

History of FEMA: 

SIMSR MFM Ist SEM 4 History of FEMA Foreign Exchange Management Act (FEMA) replaced Foreign Exchange Regulation Act of 1973 (FERA) in India was repealed on 1 June, 2000. Exchange Control Act , during the second world war Foreign Exchange Regulation Act in 1947 . Why FERA was replaced by FEMA? Foreign Exchange Reserve Position Rules and Regulations for Fera Under FERA,

Negative impact of FERA : 

SIMSR MFM Ist SEM 5 Negative impact of FERA HOW HAWALA TRADING EFFECTED INDIAN ECONOMY Indian rupee rates Vs. U.S. dollar were as under. Year 1981Rs. 8 per dollar. Year 1991Rs. 18 per dollar. Year 1999Rs. 43 per dollar.

General Information: 

SIMSR MFM Ist SEM 6 General Information How different is FEMA from FERA? Objective Transactions in Capital Account and Current Account. Civil/Criminal Prosecution Who is resident in India ? Credit Cards, Debit cards etc. EXTENSION/APPLICABILITY OF THE ACT

CLASSIFICATION OF TRANSACTIONS : 

SIMSR MFM Ist SEM 7 CLASSIFICATION OF TRANSACTIONS CAPITAL ACCOUNT TRANSACTIONS: Transactions that alter the domestic assets and liabilities of a person resident in India or a person resident outside India in relation to his country. CURRENT ACCOUNT TRANSACTIONS : Transactions which do not fall under the ambit of capital account transactions are considered as current account transactions.

FEMA PROVISIONS & OPERATIONAL RESPONSIBILITY: 

SIMSR MFM Ist SEM 8 FEMA PROVISIONS & OPERATIONAL RESPONSIBILITY Provisions under FEMA Act Administration of FEMA Provisions Authorized Person Responsibilities of Authorized Person

FEMA 1999 ENFORCEMENT DIRECTORATE: 

SIMSR MFM Ist SEM 9 FEMA 1999 ENFORCEMENT DIRECTORATE Established by Central Govt to investigate due adherence to the provisions of the Act by market participants. Concerned with enforcement of the provisions of the Act to prevent leakage of foreign exchange occurring through various malpractices. Directorate of Enforcement is responsible for detection of cases relating to violation and performance of adjudicatory functions to curb malpractices.

ENFORCEMENT DIRECTORATE ORG SET UP AND FUNCTIONS: 

SIMSR MFM Ist SEM 10 ENFORCEMENT DIRECTORATE ORG SET UP AND FUNCTIONS ORGANISATIONAL SET UP : Head Quartered at New Delhi. 7 Zonal Offices headed by deputy directors, 1 each in 4 metros & Jalandhar, Ahmedabad & Bangalore. 9 sub zonal offices headed by Assistant Directors at Agra, Srinagar, Jaipur, Varanasi, Trivandrum, Calicut, Hyderabad, Guwahati & Goa. 1 Unit at Madurai headed by Chief Enforcement Officer. 3 Special Directors of Enforcement and 1 Additional Director of Enforcement.

ENFORCEMENT DIRECTORATE FUNCTIONS: 

SIMSR MFM Ist SEM 11 ENFORCEMENT DIRECTORATE FUNCTIONS To collect and develop intelligence relating to violation of provisions of FEMA. To conduct searches of suspected persons, conveyances and premises for seizing incriminating materials. To enquire into and investigate suspected violations or provisions of FEMA. To adjudicate cases of violations of FEMA for levying penalties and also for confiscating the amounts involved in contraventions. To realise penalties in departmental adjudication.

CONTRAVENTION AND PENALTIES: 

SIMSR MFM Ist SEM 12 CONTRAVENTION AND PENALTIES Penalty of upto 3 times of the sum involved in each contravention where such amount is quantifiable. Penalty of upto Rs 2 lakhs where the amount is not quantifiable. In case of continuing contravention, further penalty of Rs 5,000.00 for every day after the first day of contravention Confiscation of currency, security or any other money or property in respect of which the contravention has taken place. Civil imprisonment for failure to make full payment of the penalty imposed within 90 days from the notice of payment.

FEMA 1999 ALLIED ACTS : 

SIMSR MFM Ist SEM 13 FEMA 1999 ALLIED ACTS COFEPOSA – Conservation of Foreign Exchange & Prevention of Smuggling Activities Act, 1974. SAFEMA – The Smuggling & Foreign Exchange Manipulation (Forfeiture of Property) Act, 1976. Foreign Contribution (Regulation) Act, 1976.

Main Objectives of FEMA Act: 

SIMSR MFM Ist SEM 14 Main Objectives of FEMA Act Controls dealings in foreign exchange Restrains any person resident in India from dealing in foreign exchange Deals with capital account transactions. Deals with export of goods and services. Casts the responsibility on the persons resident Pertains to the establishment of Directorate of Enforcement and the empowers it to control voilation of the act

CAPITAL ACCOUNT CONVERTIBILITY: 

SIMSR MFM Ist SEM 15 CAPITAL ACCOUNT CONVERTIBILITY What is CAC Prerequisite of CAC Evolution of CAC in India Economic Scenario Reasons for Introduction of CAC in India Benefits and Drawbacks of CAC

CASE SYUDY 1: 

SIMSR MFM Ist SEM 16 CASE SYUDY 1 Vodafone(Briton) A Foreign company HTIL( Whampoa group of Li-Ka Shing. Hong Kong A foreign company Hutchison Essor Indian Company 67% Takes over Asim Ghosh-12% A.Singh and other companies (Minority) Essor group

Case Study – Contd…..: 

SIMSR MFM Ist SEM 17 Case Study – Contd….. ED Has Issued 715 notices for violation of FEMA in last three years Appolo Hospitals Case Against Vijay Mallya Reliance Industries Limited Yum Restaurants

PowerPoint Presentation: 

SIMSR MFM Ist SEM 18 SEBI SECURITIES EXCHANGE BOARD OF INDIA

HISTORY OF STOCK MARKET & SEBI: 

SIMSR MFM Ist SEM 19 HISTORY OF STOCK MARKET & SEBI First Stock Exchange made in 1602 and East India Company was the first company to purchase shares. Bombay Stock Exchange was established in 1875 Earlier stock exchanges were dealing in commodities market

PRIOR TO SEBI……: 

SIMSR MFM Ist SEM 20 PRIOR TO SEBI…… Securities Contracts (Regulation) Act 1956 was formed to control stock markets and securities in India IT was an Act which empowers Central Govt to recognize stock exchanges and has total control over it. Exchanges have to submit periodical returns or govt may call for direct enquiries

HOW SEBI CAME IN TO PICTURE: 

SIMSR MFM Ist SEM 21 HOW SEBI CAME IN TO PICTURE The World Bank and the International Monetary Fund (IMF) have introduced a benchmark i.e., Financial Services Assessment Programme (FSAP) The mission of SEBI is to make India as one of the best securities market of the world and SEBI as one of the most respected regulator in the world.

Objectives and Functions of SEBI: 

SIMSR MFM Ist SEM 22 Objectives and Functions of SEBI Objectives of SEBI: It tries to develop the securities market. Promotes Investors Interest. Makes rules and regulations for the securities market. Functions Of SEBI: Regulates Capital Market Checks Trading of securities. Checks the malpractices in securities market. It enhances investor's knowledge on market by providing education. It regulates the stockbrokers and sub-brokers. To promote Research and Investigation

CASE STUDIES: 

SIMSR MFM Ist SEM 23 CASE STUDIES SEBI has directed Dipak Patel (U.S.A Passport No.209189753 ), Portfolio Manager of M/s Passport India Investment (Mauritius) Ltd, Kanaiyalal Baldev Patel (PAN AEWPP1442H ), Anandkumar Baldevbhai Patel (PAN AACFB8866B ) and Bhoomi Industries (PAN AACFB8866B) not to buy, sell or deal in any securities, directly or indirectly till further directions in this regard.

CASE STUDIES: 

SIMSR MFM Ist SEM 24 CASE STUDIES SEBI has directed Dipak Patel (U.S.A Passport No.209189753 ), Portfolio Manager of M/s Passport India Investment (Mauritius) Ltd, Kanaiyalal Baldev Patel (PAN AEWPP1442H ), Anandkumar Baldevbhai Patel (PAN AACFB8866B ) and Bhoomi Industries (PAN AACFB8866B) not to buy, sell or deal in any securities, directly or indirectly till further directions in this regard.