Foreign Exchange Management ActMCQQuestion 5745 of 6
All Questions

What is the penalty for contravening the provisions of the Foreign Exchange Management Act, 1999?

Options

AUp to three times the sum involved in the contravention
BUp to twice the sum involved in the contravention
CUp to four times the sum involved in the contravention
DUp to five times the sum involved in the contravention
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Correct Answer

✅ Option A — Up to three times the sum involved in the contravention

All Options:

  • AUp to three times the sum involved in the contravention ✓
  • BUp to twice the sum involved in the contravention
  • CUp to four times the sum involved in the contravention
  • DUp to five times the sum involved in the contravention

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Detailed Solution & Explanation

As per Section 13 of FEMA, if any person contravenes any provision of this Act, or any rule, regulation, notification, direction or order made thereunder, he shall be liable to such penalty as may be adjudged by the Adjudicating Authority, not exceeding three times the sum involved in such contravention.
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More Questions from Foreign Exchange Management Act

Which of the following is the primary objective of the Foreign Exchange Management Act, 1999?

Which of the following authorities is responsible for administering the Foreign Exchange Management Act, 1999?

Explain the provisions of Section 6 of the Foreign Exchange Management Act, 1999, regarding the transfer or issue of any foreign security.

Discuss the key differences between the Foreign Exchange Regulation Act, 1973 (FERA), and the Foreign Exchange Management Act, 1999 (FEMA).

Analyse the provisions of the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019, as amended, and their impact on foreign investment in India.

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