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CA Intermediate · Corporate and Other Laws · The Foreign Exchange Management Act, 1999

Under FEMA, 1999, which authority is empowered to authorise a person to deal in foreign exchange as an 'authorised person', such as banks and money changers?

The Reserve Bank of India authorises persons as authorised persons, such as authorised dealers and money changers, to deal in foreign exchange or foreign securities under FEMA. SEBI, the Ministry of Corporate Affairs and the CBDT do not have this power under the Act.

  1. ASecurities and Exchange Board of India
  2. BReserve Bank of IndiaCorrect
  3. CMinistry of Corporate Affairs
  4. DCentral Board of Direct Taxes

Explanation

Section 10 of FEMA lets the Reserve Bank of India authorise any person to act as an authorised dealer, money changer or offshore banking unit, or in any other manner to deal in foreign exchange or foreign securities. SEBI, MCA and CBDT have no such power under the Act.

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