The Forum of Free Enterprise is a non-political organization founded in 1956 by A. D. Shroff, and has been established to educate public opinion in India on free enterprise and a democratic way of life. The Forum publishes booklets to further its objects. The following booklet is titled “Convertibility of Rupee on Capital Account” was published on October 14, 1997, and was authored by Dr. S.R.K. Rao. The text is based on a talk delivered in Mumbai on 30th September 1997. The author explains what is Capital Account Convertibility and the advantages of capital account convertibility. The author further elucidates certain conditions such as fiscal consolidation, low inflation, low-interest rates, prioritization of investment, building up of sufficient foreign exchange reserves, and liberalization of the financial sector and economic reforms among other things that should exist in the economy for the capital-account convertibility to be successful. The text explains India’s situation regarding capital account convertibility and what needs to be done further to better it. The author further elucidates the impact of capital account convertibility on the economy and stock exchanges, and also mentions capital account convertibility and its impact on the exchange rate. The author welcomes the government proposal of replacement of FERA to FEMA and concludes with the view that “Even after capital account transactions are liberalized, there is need for an institutional framework for the management of foreign exchange”.