The Foreign Exchange Regulation Act, 1973 was enacted to control and regulate foreign exchange transactions in India and to facilitate the development and management of the foreign exchange market in the country.

The Reserve Bank of India (RBI) is the authority responsible for administering the Foreign Exchange Regulation Act, 1973. The RBI is empowered to issue regulations, guidelines, and notifications under the Act to regulate foreign exchange transactions and to ensure compliance with the provisions of the Act.

Under the Foreign Exchange Regulation Act, 1973, 'foreign exchange' is defined as any currency other than Indian Rupee, any asset that can be converted into foreign currency, and any security that is denominated in foreign currency.

The Foreign Exchange Management Act (FEMA), 1999 was enacted to provide a comprehensive framework for regulating foreign exchange transactions in India. FEMA replaced and repealed the Foreign Exchange Regulation Act, 1973, and it aims to facilitate external trade and payments and to promote the orderly development and maintenance of the foreign exchange market in India.

The main features of the Foreign Exchange Management Act (FEMA), 1999 include the provision for the free flow of foreign exchange in India, the regulation of foreign exchange transactions through a system of authorizations and permissions, and the imposition of restrictions on the holding of foreign exchange by residents and non-residents.

The Reserve Bank of India (RBI) is the nodal agency for administering FEMA. It issues regulations, guidelines, and notifications under FEMA, and it grants authorizations and permissions for foreign exchange transactions.

The different types of foreign exchange transactions that are regulated under FEMA include the import and export of goods and services, inward and outward remittances, and foreign direct investment.

The penalties for violating the provisions of FEMA include both fine and imprisonment.

The purpose of the Foreign Exchange Dealers Association of India (FEDAI) is to promote the development of the foreign exchange market in India, to regulate the activities of foreign exchange dealers in India, and to provide a forum for foreign exchange dealers to interact with each other.

The Foreign Investment Promotion Board (FIPB) approves foreign direct investment proposals, recommends policies for promoting foreign direct investment in India, and monitors the implementation of foreign direct investment projects.

The difference between a resident and a non-resident under FEMA is that a resident is an individual who is ordinarily resident in India, a non-resident is an individual who is not ordinarily resident in India, a resident is a company that is incorporated in India, and a non-resident is a company that is not incorporated in India.

The different types of foreign exchange accounts that can be opened by residents and non-residents under FEMA include Resident Ordinary Account (ROA), Non-Resident Ordinary Account (NRO), and Foreign Currency Non-Resident (FCNR) Account.

There are no limits on the amount of foreign exchange that can be held by residents and non-residents under FEMA.

The Liberalised Remittance Scheme (LRS) under FEMA allows residents to remit up to USD 250,000 per financial year for various purposes, such as travel, education, medical treatment, and maintenance of close relatives abroad.

The purpose of the Special Economic Zones (SEZs) in India is to attract foreign investment, to promote exports from India, and to create employment opportunities.