Holding of foreign exchange, etc
Section 4 of the Foreign Exchange Management Act, 1999 deals with holding of foreign exchange, etc. Save as otherwise provided in this Act, no person resident in India shall acquire, hold, own, possess or transfer any foreign exchange, foreign security or any immovable property situated outside India. The Act came into force on 01 Jun 2000.
Save as otherwise provided in this Act, no person resident in India shall acquire, hold, own, possess or transfer any foreign exchange, foreign security or any immovable property situated outside India.
Section 4, The Foreign Exchange Management Act, 1999 (Act 42 of 1999).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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PC Financial Services Pvt. Ltd. v. Directorate of Enforcement
Court's Decision & Legal Precedent
FEMA s.4 (holding foreign exchange etc.) can ground a s.37A seizure/"reason to believe" order where ED alleges overseas FX held via group entities through bogus transfers; writ court will not pre-empt adjudicatory fact-finding if the order is not shown ultra vires or wholly whimsical — allegations and defence must be tested before the Adjudicating Authority. Current vs capital account framing noted but not used to quash at threshold.
On this section: s.4 holding of foreign exchange — ED s.37A order sustained for adjudication on alleged overseas FX holdings
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 4
What have the courts held on Section 4 of the Foreign Exchange Management Act?
PC Financial Services Pvt. Ltd. v. Directorate of Enforcement (13 Dec 2023) is the leading judgment on this section among those set out below: s.4 holding of foreign exchange — ED s.37A order sustained for adjudication on alleged overseas FX holdings.
How do I find court cases under Section 4 of the Foreign Exchange Management Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Fema 4, section 4 Fema, section 4 of the Foreign Exchange Management Act. People searching for it also type section 4 of foreign exchange management act 1999. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with PC Financial Services Pvt. Ltd. v. Directorate of Enforcement (13 Dec 2023).
What should I read with Section 4 of the Foreign Exchange Management Act, and has it changed?
2 other provisions in this corpus refer back to it.
When did Section 4 of the Foreign Exchange Management Act come into force?
Section 4 of the Foreign Exchange Management Act, cited as Fema 4, came into force on 01 Jun 2000, having been enacted on 29 Dec 1999. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions1265 words
- 14. Enforcement of the orders of Adjudicating Authority837 words
- 13. Penalties496 words
- 10. Authorised person489 words
- 49. Repeal and saving475 words
- 19. Appeal to Appellate Tribunal465 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.