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Discussion > Business Law > Corporate > FEMA, 2000 - Section 3(a)   Unanswered Threads Post New Topic

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sssvkSridharan R.


CA Final
[ Scorecard : 43]
Posted On 28 May 2011 at 10:00 Report Abuse

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.



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Suchitra. S


Advocate
[ Scorecard : 4730]
Posted On 30 May 2011 at 19:12 Report Abuse

You have to break the sentences to know the interpretation. 

The Sections says : No person shall,

 deal in or transfer ,

any foreign exchange or foreign security,

to any person,

not being an authorised person. 

The stress in this section is person who is authorised is the ONLY person who can deal or transfer any foreign exchange or foreign to any other person and no other person can do the said transactions. 



sssvkSridharan R.


CA Final
[ Scorecard : 43]
Posted On 31 May 2011 at 10:00 Report Abuse

I thank you very much.

 

Sridharan R.

Salem.



sssvkSridharan R.


CA Final
[ Scorecard : 43]
Posted On 31 May 2011 at 10:03 Report Abuse

Thanks.

But my doubt is

Whether a person can DEAL IN something TO SOMEONE, where as a person can transfer something TO SOMEBODY?




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