Glossary · India
FEMA (Foreign Exchange Management Act)
Definition
India's foreign-exchange law, which governs how foreign investors bring capital in and take proceeds out of the country — including pricing rules for share transfers between resident and non-resident holders.
Why it matters for a secondary
A foreign buyer purchasing secondary shares from an Indian resident seller (or vice versa) has to price the deal within FEMA's valuation rules, which is one more layer of diligence Indian secondaries carry that pure onshore-to-onshore deals don't.
Frequently asked questions
Does "FEMA (Foreign Exchange Management Act)" apply the same way everywhere in Asia-Pacific?
No. Each market in this glossary has its own regulator, corporate forms, and rules — this term is specific to India. Check the linked market page for the fuller picture.
Is this legal or financial advice?
No. This is orientation for investors and allocators, not legal or financial advice. Confirm current rules with a licensed adviser in the relevant market before acting on anything here.