The Union government will kick-start the implementation of capital account convertibility by introducing the Foreign Exchange Management Act (Fema) bill in Parliament this week.
Fema, which will replace the Foreign Exchange Regulation Act, is expected to empower Reserve Bank of India-authorised dealers (ADs) to approve and manage the foreign exchange requirements of Indian residents. The apex bank will supervise and regulate the ADs, besides evolving policy measures for foreign exchange management.
The government is likely to follow up the introduction of the Fema bill by allowing residents to invest in
