Foreign Exchange Management Act 1999

Section 48 FEMA Act 1999: Rules and Regulations to Be Laid Before Parliament

Section 48 of the Foreign Exchange Management Act, 1999 provides parliamentary oversight over rules and regulations made under FEMA. It requires subordinate legislation made under the Act to be placed before both Houses of Parliament and explains how Parliament may modify or annul it.

In simple terms: FEMA rules made by the Central Government and FEMA regulations made by the Reserve Bank of India are subject to a statutory laying procedure before Parliament. Section 48 also protects the validity of actions already taken before a later parliamentary modification or annulment.

Text of Section 48 of FEMA

48. Rules and regulations to be laid before Parliament. Every rule and regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation, or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation.

What Section 48 Means

Section 48 is a parliamentary control provision for subordinate legislation under FEMA. Parliament enacted the principal statute, but FEMA also authorises detailed rules and regulations to be made under delegated powers. Section 48 requires those instruments to be laid before both the Lok Sabha and the Rajya Sabha.

  • Every rule and regulation: the laying requirement applies to rules and regulations made under FEMA.
  • Before each House: the instrument must be placed before both Houses of Parliament.
  • Total period of 30 days: the required period may fall within one session or be spread across two or more successive sessions.
  • Modification: if both Houses agree to modify the rule or regulation within the statutory period, it thereafter operates in the modified form.
  • Annulment: if both Houses agree that the rule or regulation should not have been made, it thereafter ceases to have effect.
  • Past actions protected: a later modification or annulment does not invalidate anything already validly done under the rule or regulation before that change.

Relationship with Sections 46 and 47

Section 46 - Power of Central Government to Make Rules

Section 46 authorises the Central Government, by notification, to make rules for carrying out the provisions of FEMA. It also specifies matters for which rules may be framed. Rules made under this power are among the instruments covered by the laying requirement in Section 48.

Section 47 - Power of Reserve Bank to Make Regulations

Section 47 authorises the Reserve Bank of India, by notification, to make regulations for carrying out FEMA and the rules made under it. Regulations made under Section 47 are likewise subject to Section 48.

Why the Parliamentary Laying Requirement Matters

The provision creates legislative oversight after delegated legislation is made. The rule or regulation can operate when made in accordance with FEMA, but it remains subject to the statutory process under which both Houses may agree to alter it or determine that it should not continue.

The final part of Section 48 is important because it expressly preserves the validity of things previously done under the rule or regulation. Accordingly, a subsequent parliamentary modification or annulment does not, merely by reason of Section 48, undo completed action taken before that change.

FEMA Act Background

The Foreign Exchange Management Act, 1999 is Act No. 42 of 1999. Its stated object is to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and promoting the orderly development and maintenance of the foreign exchange market in India. FEMA came into force on 1 June 2000.

Official FEMA Resources

For the current statutory text and subordinate legislation, readers should verify the latest official material before relying on a rule or regulation, particularly where amendments may have been notified after publication of this article.

Legal note: This page explains Section 48 of FEMA for general information. Rules and regulations under FEMA are amended from time to time; the applicable official notification and current consolidated law should be checked for a particular transaction or proceeding.