| BASIS OF COMPARISON | FERA | FEMA |
|---|---|---|
| Purpose | Regulate foreign exchange | Manage foreign exchange |
| Year Enacted | 1973 | 1999 |
| Penalty for Breach | Severe, including imprisonment | Monetary penalty, no imprisonment |
| Focus | Restrictions and prohibitions | Promotion and facilitation |
| Foreign Investment | Discouraged | Encouraged |
| Regulatory Approach | Rigid and bureaucratic | Flexible and transparent |
| WTO Compliance | Non-compliant | Compliant |