In the post-reforms period, Foreign Exchange Regulation Act was replac
Right Answer is: A
• Foreign Exchange Regulation Act was passed by parliament of India in 1973.
• It was passed for the purpose of regulating the financial transactions
concerning foreign exchange and securities.
• It came into effect on 1 January, 1974.
• FERA did not comply with the post-liberalisation policies of the Government, so it had to replace with a new act.
• Hence, Foreign Exchange Management Act, 1999 was passed by
Parliament. It was enacted on December 29, 1999.
• FEMA replaced FERA to meet the need of time.