THE FOREIGN EXCHANGE REGULATION ACT, 1973 [Act, No. 46 of 1973] [19 th September, 1973] PREAMBLE An Act to consolidate and amend the law regulating certain payments, dealing in foreign exchange and securities, transactions indirectly affecting foreign exchange and the import and export of currency1[* * * * *], for the conservation of the foreign exchange resources of the country and the proper utilisation thereof in the interest of the economic development of the country. be it enacted by Parliament in the twenty-fourth year of the Republic of India as follows: - _____________________ 1. The Words "and bullion" omitted by Act 29 of 1993, section 2 w.e.f. 8-1-1993.
View Complete Act List Judgments citing this sectionThere shall be the following classes of officers of Enforcement, namely:- (a) Directors of Enforcement; (b) Additional Directors of Enforcement; (c) Deputy Directors of Enforcement; (d) Assistant Directors of Enforcement; and (e) such other class of officers of Enforcement as may be appointed for the purposes of this Act.
View Complete Act List Judgments citing this section.....under this section. (5) An authorised dealer shall, before undertaking any transaction in foreign exchange on behalf of any person, require that person to make such declarations and to give such information as will reasonably satisfy him that the transaction will not involve, and is not designed for the purpose of any contravention or evasion of the provisions of this Act or of any rule, notification, direction or order made thereunder, and where the said person refuses to comply with any such requirement or makes only unsatisfactory compliance therewith, the authorised dealer shall refuse to undertake the transaction and shall, if he has reason to believe that any such contravention or evasion as aforesaid is contemplated by the person report the matter to the Reserve Bank.
View Complete Act List Judgments citing this section.....(1) may be revoked by the Reserve Bank at any time if the Reserve Bank is satisfied that- (i) it is in the public interest to do so; or (ii) the money changer has not complied with the conditions subject to which the authorisation was granted or has contravened any of the provisions of this Act or of any rule, notification, direction or order made thereunder: Provided that no such authorisation shall be revoked on the ground specified in clause (ii)unless the money-changer has been given a reasonable opportunity for making a representation in the matter. (4) The provisions of sub-sections (4) and (5) of section 6 shall insofar as they are applicable, apply in relation to a money changer as they apply in relation to an authorised dealer. Explanation. In this section "foreign currency" means foreign currency in the form of notes, coins, or traveller's cheques and "dealing" means purchasing foreign currency in the form of notes, coins and traveller's cheques or selling foreign currency in the form of notes or coins.
View Complete Act List Judgments citing this section.....time or sends or brings any goods of a kind, quality or quantity different from that specified by him at the time of acquisition of the foreign exchange, such person shall unless the contrary is proved, be presumed not to have been able to use the foreign exchange for the purpose for which he acquired it or, as the case may be, to have used the foreign exchange so acquired otherwise than for the purposes for which it was acquired. (5) Nothing in this section shall be deemed to prevent a person from buying from any post office in accordance with any law or rules made thereunder for the time being in force, any foreign exchange in the form of postal orders or money orders.
View Complete Act List Judgments citing this section.....in, India. (3) Save as may be provided in, and in accordance with, any general or special exemption from the provisions of this sub-section, which may be granted conditionally or unconditionally by the Reserve Bank, no person shall remit or cause to be remitted any amount from any foreign country into India except in such a way that the remittance is received in India only through an authorised dealer. (4) Nothing in this section shall restrict the doing by any person of anything within the scope of any authorisation or exemption granted under this Act. (5) For the purposes of this section and section 39, "security" includes coupons or warrants representing dividends or interest and the life or endowment insurance policies.
View Complete Act List Judgments citing this section.....be a good discharge to the person making the payment. (2) No sum standing at the credit of a blocked account shall be drawn or except in accordance with any general or special permission which may be granted conditionally or otherwise by the Reserve Bank. (3) In this section, "blocked account" means an account opened, whether before or after the commencement of this Act, as a blocked account at any office or branch in India of a bank authorised in this behalf by the Reserve Bank, or an account blocked, whether before or after such commencement, by order of the Reserve Bank. 1 [* * * * *] ________________________ 1. Sections 11 and 12 omitted by Act 29 of 1993, sec. 4 w.e.f. 8-1-1993.
View Complete Act List Judgments citing this section(1) No person who has a right to receive any foreign exchange or to receive from a person resident outside India a payment in rupees shall, except with the general or special permission of the Reserve Bank, do or refrain from doing anything, or take or refrain from taking any action, which has the effect of securing- (a) that the receipt by him of the whole or part of that foreign exchange or payment is delayed, or (b) that the foreign exchange or payment ceases in whole or in part to be receivable by him. (2) Where a person has failed to comply with the requirements of sub-section (1) in relation to any foreign exchange or payment in rupees, the Reserve Bank may give to him such directions as appear to be expedient for the purpose of securing the receipt of the foreign exchange or payment, as the case may be. 1 [* * * * *] ________________________ 1. Section 17 omitted by Act 29 of 1993, Section 6 w.e.f. 8-1-1993.
View Complete Act List Judgments citing this section(1) Notwithstanding anything contained in section 81 of the Companies Act, 1956(1 of 1956), no person shall, except with the general or special permission of the Reserve Bank,- (a) take or send any security to any place outside India; (b) transfer any security, or create or transfer any interest in a security, to or in favour of a person resident outside India; 1 [* * * * *] (d) issue, whether in India or elsewhere, any security which is registered or to be registered in India, to a person resident outside India; (e) acquire, hold or dispose of any foreign security. (2) Where the holder of a security is a nominee, neither he nor any person through whose agency the exercise of all or any of the holder's rights in respect of the security is controlled shall, except with the general or special permission of the Reserve Bank, do any act, whereby he recognises or gives effect to the substitution of another person as the person from whom he directly receives instructions, unless both the persons previously instructing and the person substituted for that person were, immediately before the substitution, resident in India.
View Complete Act List Judgments citing this sectionNo person resident in India shall except with the general or special permission of the Reserve Bank, settle, or make a gift of, any property so that a person who at the time of the settlement or the making of the gift is resident outside India, elsewhere than in the territories notified in this behalf by the Reserve Bank, will have an interest in the property, or exercise any power for payment in favour of a person who at the time of the exercise of the power is resident outside India elsewhere than in such notified territories: Provided that any settlement or gift made or any power exercised as aforesaid without the permission of the Reserve Bank shall not be invalid merely on the ground that such permission has not been obtained.
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