Scope of the Act : The Foreign Exchange Regulation Act covers the types of transaction having international financial implications. Broadly the Exchange Control regulates the following transactions:

1) Purchase and sale of and other dealings in foreign exchange and maintenance of balances at foreign centres.

2) Procedures for realisation of proceeds of exports.

3) Payments to non-residents or to their accounts in India.

4) Transfer of securities between residents and non-residents and equisetums and holdings of foreign securities.

5) Foreign travel with exchange.

6) Export and Import of currency, cheques, drafts, travellers cheques and other financial instruments, securities, etc.

7) Activities in India of branches of foreign firms and companies and foreign nations.

8) Foreign direct Investment in India including invested by non-resident Indian nationals/persons of Indian origin and corporate bodies predominantly owned by such persons.

9) Appointment of non-residents and foreign nationals and foreign companies as agents in India.

1 0) Setting up of Joint ventures/subsidiaries  outside India by Indian companies.

11) Acquisition, holding and disposal of immovable property in India by foreign nationals and foreign companies.

12) Acquisition, holding and disposal of immovable property outside India by Indian nationals resident in India.