The Foreign Exchange Management Act (FEMA) is an Indian law that was enacted in 1999 to facilitate the smooth management of foreign exchange transactions in India. It replaced the earlier Foreign Exchange Regulation Act (FERA), which was more restrictive. FEMA aims to promote the orderly development and maintenance of the foreign exchange market in India. The law primarily regulates foreign exchange transactions involving the Indian currency, setting rules for the transfer of funds across borders, and managing the inflow and outflow of foreign currency