Foreign Exchange Regulation Act (FERA) will lapse into history from 1st June 2000, as Foreign Exchange Management Act (FEMA) takes its place. FERA was enacted by the parliament in 1973 in view of acute shortage of foreign exchange resources of in the country, FERA, was replaced by the government since it became incompatible with its proliberalisation policies. The most important change in FEMA being forex law offenders will no longer be criminals but civil offenders. For those dealing in Foreign Exchange Section 3 to 9 of FEMA lays down what to do and what not to do and also prescribes a maximum penalty of thrice the amount of money involved, in case of contravention of any of the provisions as against five times under FERA. In case of failure to pay the penalties, although no prosecution is attracted but the Enforcement department can approach the court and sent the offender to jail where they shall be treated as civil offenders who will have to pay charges for his stay in jail. Cases pending under FERA are required to be settled by 31st May 2001, thereafter they will lapse.

The ceiling on directors' fees for attending meetings has been more than doubled from Rs. 2,000 to a relatively respectable Rs. 5,000. The central government has amended rule 10-B of the Companies (Central Government) General Rules and Forms, 1956. The revision takes effect from April 1, 2000. Sitting fees for attending board meetings have been hiked marginally. Indian Companies can now pay remuneration up to a maximum of Rs. 5,000 as against that of Rs.2000 previously. The Central government has amended rule 10-B of the Companies (Central Government) General Rules and Forms, 1956. The revision will be effective from April 1, this year. Also an amendment has been brought about in schedule XIII of the Companies Act. This amendment relates to the payment of managerial remuneration to, in case of inadequacy of profits of the company. The limits now range between Rs. 75,000 to Rs. 2,00,000 per month, depending upon the effective capital of the companies as against that of Rs.40,000 to Rs.87,500 previously. The buyback procedures for unlisted companies have also been revised. The Private Limited Company and Unlisted Public Limited Company (Buy-back of Securities) Rules, 1999,have been amended with effect from March 2, 2000. Even a private company or an unlisted public company going in for for buy-back of shares or other specified securities has to necessarily disclose its pre and post buy-back equity ratios, in the letter of offer filed with the Registrar of Companies.

THE Bombay Stock Exchange (BSE) has unveiled its listing norms for companies, which are already listed on any other stock exchanges and want to get listed on the BSE. Such norms are applicable only for companies having issued capital between Rs. 5 Crore and Rs.10 Crore. The Companies are required to fulfill the following in order to get listing on the BSE. The new companies should have profit-making track record for at least three years. The minimum market capitalization of such companies should be Rs. 20 Crore based on average price of the last six months. The companies have to adhere to certain trading criteria to become eligible for the listing on the exchange. The companies should have been traded for a minimum 50 percent of the total trading days during the last six months on any stock exchange. The average daily volume and trades should be minimum 1,000 shares and five trades during the last three months. The companies are required to keep minimum 25 per cent of issued capital with public including Bodies corporate. They also need to sign an agreement with CDSL and NSDL for dematerialised (demat) trading.

While addressing the American investors, with regards to the investment in crucial sectors in India the finance minister also provided an assurance to the investors about safety of their investments made in India irrespective of the government in power, thereby potraying a stronger image of the country's economy and consensus among various parties for reforms. He also highlighted the governments determination to carry on with its reforms process and also hinted at the possibility of opening up other sectors on the Indian economy. Infrastructure, Telecommunications and Agriculture related activities were the important areas for investments he stressed upon. He also revealed the country's plan to build 13000 kms. of national highways and providing 75 million connections by 2005 and increasing the same to 175 million by 2010.