10. (1) The Reserve Bank may, on an application made to it in this
behalf, authorise any person to be known as authorised person to deal
in foreign exchange or in foreign securities as an authorised dealer,
money changer or off-shore banking unit or in any other manner as it
deems fit.
(2) An authorisation under this section shall be in writing and
shall be subject to the conditions laid down therein.
(3) An authorisation granted under sub-section (1) may be revoked by
the Reserve Bank at any time if the Reserve Bank is satisfied thatâ
(a) it is in public interest so to do; or
(b) the authorised person has failed to comply with the condition
subject to which the authorisation was granted or has contravened any
of the provisions of the Act or any rule, regulation, notification,
direction or order made thereunder:
Provided that no such authorisation shall be revoked on any ground
referred to in clause (b) unless the authorised person has
been given a reasonable opportunity of making a representation in the
matter.
(4) An authorised person shall, in all his dealings in foreign
exchange or foreign security, comply with such general or special
directions or orders 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 person shall not engage in any transaction
involving any foreign exchange or foreign security which is not in
conformity with the terms of his authorisation under this section.
(5) An authorised person shall, before undertaking any transaction
in foreign exchange on behalf of any person, require that person to
make such declaration 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, regulation, 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 person shall refuse in writing 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.
(6) Any person, other than an authorised person, who has acquired or
purchased foreign exchange for any purpose mentioned in the
declaration made by him to authorised person under sub-section (5)
does not use it for such purpose or does not surrender it to
authorised person within the specified period or uses the foreign
exchange so acquired or purchased for any other purpose for which
purchase or acquisition of foreign exchange is not permissible under
the provisions of the Act or the rules or regulations or direction or
order made thereunder shall be deemed to have committed contravention
of the provisions of the Act for the purpose of this section.
Reserve Bankâs powers to issue directions to authorised
person.
11. (1) The Reserve Bank may, for the purpose of securing compliance
with the provisions of this Act and of any rules, regulations,
notifications or directions made thereunder, give to the authorised
persons any direction in regard to making of payment or the doing or
desist from doing any act relating to foreign exchange or foreign
security.
(2) The Reserve Bank may, for the purpose of ensuring the compliance
with the provisions of this Act or of any rule, regulation,
notification, direction or order made thereunder, direct any
authorised person to furnish such information, in such manner, as it
deems fit.
(3) Where any authorised person contravenes any direction given by
the Reserve Bank under this Act or fails to file any return as
directed by the Reserve Bank, the Reserve Bank may, after giving
reasonable opportunity of being heard, impose on the authorised person
a penalty which may extend to ten thousand rupees and in the case of
continuing contravention with an additional penalty which may extend
to two thousand rupees for every day during which such contravention
continues.
Power of Reserve Bank to inspect authorised person.
12. (1) The Reserve Bank may, at any time, cause an inspection to be
made, by any officer of the Reserve Bank specially authorised in
writing by the Reserve Bank in this behalf, of the business of any
authorised person as may appear to it to be necessary or expedient for
the purpose ofâ
(a) verifying the correctness of any statement, information or
particulars furnished to the Reserve Bank;
(b) obtaining any information or particulars which such authorised
person has failed to furnish on being called upon to do so;
(c) securing compliance with the provisions of this Act or of any
rules, regulations, directions or orders made thereunder.
(2) It shall be the duty of every authorised person, and where such
person is a company or a firm, every director, partner or other
officer of such company or firm, as the case may be, to produce to any
officer making an inspection under sub-section (1), such books,
accounts and other documents in his custody or power and to furnish
any statement or information relating to the affairs of such person,
company or firm as the said officer may require within such time and
in such manner as the said officer may direct.