FER Act 6
Section 6 · Authorised dealers in foreign exchange .-(1) The Reserve Bank may, on an application made to it in this behalf, authorise any person to deal in foreign exchange
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(2)
An authorisation under this section shall be in writing and-(i)
may authorise dealings in all foreign currencies or may be restricted to authorising dealings in specified foreign currencies only;(ii)
may authorise transactions of all descriptions in foreign currencies or may be restricted to authorising specified transactions only;(iii)
may be granted to be effective for a specified period, or within specified amounts;(iv)
may be granted subject to such conditions as may be specified therein.(3)
Any authorisation granted under sub-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 authorised 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:(4)
An authorised 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 authorised dealer shall not engage in any transaction involving any foreign exchange which is not in conformity with the terms of his authorisation 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.Your private note on this section
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