According to CII, the FEMA Bill was a liberal and simplified law, more in tune with the emerging scenario that envisages a move towards the globalisation of Indian economy.

Unlike in the case of FERA, violations of the provisions of FEMA will be of civil nature and not criminal offences, thus entailing much less stringent penalties.

While in the case of FERA, non-bailable arrest is possible even on grounds of suspicion, this is not so in case of FEMA. Under FEMA, any Indian citizen can hold foreign exchange/property acquired overseas when residing abroad or inherited from a person resident outside India.

Also any person may sell or draw foreign exchange for current or capital account transactions from authorised dealer or agency, subject to conditions being imposed by the central government/Reserve Bank in consultation with each other.

On the prevention of money laundering Bill, CII said that in view of the fact that money laundering posed a serious threat not only to the financial systems of countries, but also to their integrity and sovereignty, the need for the legislation cannot be gainsaid.

The derivatives trading Bill, which would pave the way for the introduction of new financial instruments such as derivatives, would boost the market. In the current scenario of global competition, industries have to take a lot of risk in the management of their resources, both physical and financial, if they have to be competitive and profitable, said CII.

CII said the need of the hour was efficient risk management systems, which enhanced the income on good times and controls the losses within manageable levels in not to so good times. Along with an effective system in production and marketing, the industry needed low cost, risk reducing financing options, development of an efficient derivatives markets in both commodities as well as financial products which will help in achieving these objectives, said CII. The decision to ratify the migration package, which would allow the basic and cellular service operators to migrate from the existing system of a fixed license fee to a revenue sharing regime is also welcome step and would also send positive signals to the foreign investing community, CII added.