Dear LawerClubIndia Members,
Reg.: Foreign Exchange Management Act, 2000 – Section 3(a).
I reproduced Section 3(a) of FEMA below.
3(a)
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 deal in or transfer any foreign exchange or foreign security to any person not being an authorised person.
Let us forget FEMA for few seconds. I mean, let us suppose there is no FEMA.
A person can deal in foreign exchange or foreign security.
A person can transfer foreign exchange or foreign security to any other person.
My doubt: Can a person deal in foreign exchange/security TO any person?
Let us remember FEMA.
As per the construction of the above section,
1. A person shall NOT transfer foreign exchange or foreign security to any person not being an authorised person – Okay.
2. A person shall NOT deal in foreign exchange or foreign security to any person not being an authorised person - ?
Someone can transfer something to another person.
Can someone deal in something TO another person? – My doubt.
Had the above section been as follows, the above doubt did not arise in my mind.
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 deal in any foreign exchange or foreign security and no person shall transfer foreign exchange or foreign security to any person not being an authorised person.
