Authorised dealers in foreign
exchange
6. (a) The Reserve Bank may, on
an application made to it in this behalf, authorize any person to deal in foreign
exchange. (b) An authorization under this section shall be in writing and -
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may authorize transactions
of all descriptions in foreign currencies or may be restricted to authorizing
dealings in specified foreign currencies only;
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may authorize dealings
in all foreign currencies or may be restricted to authorizing specified
transactions only;
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may be granted to be effective
for a specified period, or within specified amounts;
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may be granted subject
to such conditions as may be specified therein.
(c) Any authorization granted
under sub-section (1) may be revoked by the Reserve Bank at any time if the
Reserve Bank is satisfied that, -
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it is in the public interest
to do so; or
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the authorized dealer 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:
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Provided that no such authorization
shall be revoked on the ground specified in clause
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unless the authorized dealer
has been given a reasonable opportunity for making a representation in
the matter.
(d) Any authorized dealer shall,
in all his dealings in foreign exchange and in the exercise and discharge of
the powers and of the functions delegated to him under section 74, comply with
such general or special directions or instructions as the Reserve Bank may,
from time to time, think fit to give, and, except with the previous permission
of the Reserve Bank, an authorized dealer shall not engage in any transaction
involving any foreign exchange which is not in conformity with the terms of
his authorization under this section.
(e) 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. |