Regulatory Hurdles Loom Over Zepto's $1 Billion IPO Ambition
Zepto faces regulatory scrutiny under FEMA as it prepares for a $1 billion IPO, highlighting compliance challenges in India's startup ecosystem.
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The Foreign Exchange Management Act, 1999 (FEMA) is an Act of the Parliament of India which was adopted under the guidance of Prime Minister Atal Bihari Vajpayee "to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India". It was passed on 29 December 1999 in parliament, replacing the Foreign Exchange Regulation Act (FERA). This act makes offences related to foreign exchange civil offenses. It extends to the whole of India, replacing FERA, which had become incompatible with the pro-liberalization policies of the Government of India. It enabled a new foreign exchange management regime consistent with the emerging framework of the World Trade Organization (WTO). It also paved the way for the introduction of the Prevention of Money Laundering Act, 2002, which came into effect on 1 July 2005. Starting in 2004, the Act also includes provisions for the Liberalised Remittance Scheme (LRS), this provision allows for easier outward remittance of funds and is available to all resident individuals, including minors and students.
Zepto faces regulatory scrutiny under FEMA as it prepares for a $1 billion IPO, highlighting compliance challenges in India's startup ecosystem.
VTechX HubThis act makes offences related to foreign exchange civil offenses.
SourceIt extends to the whole of India, replacing FERA, which had become incompatible with the pro-liberalization policies of the Government of India.
SourceAsk VTechX Intelligence about Foreign Exchange Management Act
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