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Grant of Authorisation by RBI [ Section 10(2)] - FEMA Ready Reckoner - FEMAExtract Grant of Authorisation by RBI In terms of section10(2) of FEMA Act,1999 An authorisation under this section shall be in writing and shall be subject to the conditions laid down therein. Analysis of Section 10(2) of FEMA Act,1999 The Authorised person should deal in foreign exchange and foreign securities as per guidelines issued by RBI. They should submit reports to RBI as prescribed. Their accounts can be inspected by RBI. Authorised Dealer (AD) and Full fledged money changer (FFMC) are authorised to appoint agents/franchises for undertaking restricted money changing. the agent /franchises can carry on business of conversion of foreign currency notes, coin or travellers cheques into rupees. The desirous of being appointed as authorised person are required to make application to the reserve bank. The RBI may decline to grant application to deal foreign exchange or foreign securities if, in its opinion, the applicant is not properly equipped to undertake the foreign exchange business or for any other reasons, is considered unfit for the grant authorisation. Authorised Person are appointed by the RBI by authorisation in writing. The authorisation specifies whether it authorises dealing and transaction in all currencies or only some currencies, the amount the period and conditions subject to which the authorisaction is made. The authorised person is expected to operate within the parameters of the authorisation and condition specified therein.
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