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Section 3 - Dealing in foreign exchange, etc : Foreign Exchange Management Act 1999

 

 

What are the Rules regarding Dealing in foreign exchange, etc? Section 3 of FEMA Act 1999

Section 3 of Foreign Exchange Management Act 1999 : "Dealing in foreign exchange, etc"

3. Save as otherwise provided in this Act, rules or regulations made thereunder, or with the general or special permission of the Reserve Bank, no person shall-

(a) deal in or transfer any foreign exchange or foreign security to any person not being an authorised person;

(b) make any payment to or for the credit of any person resident outside India in any manner;

(c) receive otherwise (than) through an authorised person, any payment by order or on behalf of any person resident outside India in any manner;

Explanation.-For the purpose of this clause, where any person in, or resident in, India receives any payment by order or on behalf of any person resident outside India through any other person (including an authorised person) without a corresponding inward remittance from any place outside India, then, such person shall be deemed to have received such payment otherwise than through an authorised person;

(d) enter into any financial transaction in India as consideration for or in association with acquisition or creation or transfer of a right to acquire, any asset outside India by any person.

 

Explanation.-For the purpose of this clause, “financial transaction” means making any payment to, or for the credit of any person, or receiving any payment for, by order or on behalf of any person, or drawing, issuing or negotiating any bill of exchange or promissory note, or transferring any security or acknowledging any debt.

 

FEMA ACT 1999

Section 2 - Definitions

CHAPTER II
REGULATION AND MANAGEMENT OF FOREIGN EXCHANGE

Section 3 - Dealing in foreign exchange, etc

Section 4 - Holding of foreign exchange, etc

Section 5 - Current account transactions

Section 6 - Capital account transactions

 

 

Section 7 - Export of goods and services

Section 8 - Realisation and repatriation of foreign exchange

Section 9 - Exemption from realisation and repatriation in certain cases

CHAPTER III
AUTHORISED PERSON

Section 10 - Authorised person

 

 

Section 11 - Reserve Bank’s powers to issue directions to authorised person

Section 12 - Power of Reserve Bank to inspect authorised person

CHAPTER IV
CONTRAVENTION AND PENALTIES

Section 13 - Penalties

Section 14 - Enforcement of the orders of Adjudicating Authority

Section 15 - Power to compound contravention

 

 

Section 16 - Appointment of Adjudicating Authority

Section 17 - Appeal to Special Director (Appeals)

Section 18 - Establishment of Appellate Tribunal

Section 19 - Appeal to Appellate Tribunal

Section 20 - Composition of Appellate Tribunal

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