Skip to content

CA Intermediate · Corporate and Other Laws · The Foreign Exchange Management Act, 1999

Under FEMA, 1999, who is the authority empowered to appoint Adjudicating Authorities for holding inquiry into contraventions, and which authority hears appeals against the orders of the Adjudicating Authority?

The Central Government appoints Adjudicating Authorities under FEMA. Appeals against their orders go first to the Special Director (Appeals) and then to the Appellate Tribunal. The RBI, SEBI, ED or NCLT do not occupy these roles in this appellate hierarchy.

  1. AThe RBI appoints them, and appeals go directly to the Supreme Court
  2. BThe Central Government appoints them, and appeals lie to the Special Director (Appeals) and then to the Appellate TribunalCorrect
  3. CThe Enforcement Directorate appoints them, and appeals go to the High Court
  4. DThe SEBI appoints them, and appeals go to the National Company Law Tribunal

Explanation

The Central Government appoints Adjudicating Authorities, who inquire into contraventions and impose penalties. A person aggrieved by their order may appeal to the Special Director (Appeals), and a further appeal lies to the Appellate Tribunal. Neither SEBI, NCLT nor a direct appeal to the Supreme Court is the first route under FEMA.

Did you get it right without looking?

One question tells you little. A timed set on The Foreign Exchange Management Act, 1999 shows your real accuracy, how long you take and where you lose marks.

Practise The Foreign Exchange Management Act, 1999Free diagnostic mock

More The Foreign Exchange Management Act, 1999 questions