SectionsParticulars
1Short title, extent, application and commencement
1. This Act may be called the Foreign Exchange Management Act, 1999. 2. It extends to the whole of India. 3. It shall also apply to all branches, offices and...
2Definitions
In this Act, unless the context otherwise requires,- (a) "Adjudicating Authority" means an officer authorized under subsection (1) of section 16; (b) "Appella...
3Dealing in foreign exchange, etc.
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-...
4Holding of foreign exchange, etc.
Save as otherwise provided in this Act, no person resident in India shall acquire, hold, own, possess or transfer any foreign exchange, foreign security or a...
5Current account transactions
Any person may sell or draw foreign exchange to or from an authorized person if such sale or drawal is a current account transaction: that the Central Govern...
6Capital account transactions
(1) Subject to the provisions of sub-section (2), any person may sell or draw foreign exchange to or from an authorized person for a capital account transact...
7Export of goods and services
(1) Every exporter of goods shall; - 1. furnish to the Reserve Bank or to such other authority a declaration in such form and in such manner as may be specif...
8Realization and repatriation of foreign exchange
Save as otherwise provided in this Act, where any amount of foreign exchange is due or has accrued to any person resident in India such person shall take all...
9Exemption from realization and repatriation in certain cases
The provisions of sections 4 and 8 shall not apply to the following, namely:- 1. possession of foreign currency or foreign coins by any person up to such limi...
10Authorised person
(1) The Reserve Bank may, on an application made to it in this behalf, authorize any person to be known as authorized person to deal in foreign exchange or i...
11Reserve Bank's powers to issue directions to authorized person
(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 m...
12Power of Reserve Bank to inspect authorized person
(1) The Reserve Bank may, at any time, cause an inspection to be made, by any officer of the Reserve Bank specially authorized in writing by the Reserve Bank...
13Penalties
(1) If any person contravenes any provision of this Act, or contravenes any rule, regulation, notification, direction or order issued in exercise of the powe...
14Enforcement of the orders of adjudicating authority
(1) Subject to the provisions of sub-section (2) of section 19, if any person fails to make full payment of the penalty imposed on him under section 13 withi...
15Power to compound contravention
(1) Any contravention under section 13 may, on an application made by the person committing such contravention, be compounded within one hundred and eighty d...
16Appointment of Adjudicating Authority
(1) For the purpose of adjudication under section 13, the Central Government may, by an order published in the Official Gazette, appoint as many officers of ...
17Appeal to Special Director (Appeals)
(1) The Central Government shall, by notification, appoint one or more Special Directors (Appeals) to hear appeals against the orders of the Adjudicating Aut...
18Establishment of Appellate Tribunal
The Central Government shall, by notification, establish an Appellate Tribunal to be known as the Appellate Tribunal for Foreign Exchange to hear appeals aga...
19Appeal to Appellate Tribunal
(1) Save as provided in sub-section (2), the Central Government or any person aggrieved by an order made by an Adjudicating Authority other than those referr...
20Composition of Appellate Tribunal
(1) The Appellate Tribunal shall consist of a Chairperson and such number of Members as the Central Government may deem fit. (2) Subject to the provisions of ...
21Qualifications for appointment of Chairperson, member and Special Director (Appeals)
21. Qualifications for appointment of Chairperson, member and Special Director (Appeals) (1) A person shall not be qualified for appointment as the Chairperso...
22Term of office
The Chairperson and every other Member shall hold office as such for a term of five years from the date on which he enters upon his office: that no Chairperso...
23Terms and Conditions of service
The salary and allowances payable to and the other terms and conditions of service of the Chairperson, other Members and the Special Director (Appeals) shall...
24Vacancies
If, for reason other than temporary absence, any vacancy occurs in the office of the Chairperson or a Member, the Central Government shall appoint another pe...
25Resignation and removal
(1) The Chairperson or a Member may, by notice in writing under his hand addressed to the Central Government, resign his office: that the Chairperson or a Mem...
26Member to act as Chairperson in certain circumstances
(1) In the event of the occurrence of any vacancy in the office of the Chairperson by reason of his death, resignation or otherwise, the senior-most member, ...
27Staff of Appellate Tribunal Special Director ( Appeals )
(1) The Central Government shall provide the Appellate Tribunal and the Special Director (Appeals) with such officers and employees as it may deem fit. (2) Th...
28Procedure and powers of Appellate Tribunal & Special Director (Appeals)
(1) The Appellate Tribunal and the Special Director (Appeals) shall not be bound by the procedure laid down by the Code of Civil Procedure, 1908 (5 of 1908),...
29Distribution of business amongst Benches
Where Benches are constituted, the Chairperson may, from time to time, by notification, make provisions as to the distribution of the business of the Appella...
30Power of Chairperson to transfer cases
On the application of any of the parties and after notice to the parties, and after hearing such of them as he may desire to be heard, or on his own motion wi...
31Decision to be by majority
If the Members of a Bench consisting of two Members differ in opinion on any point, they shall state the point or points on which they differ, and make a ref...
32Right of appellant to take assistance of legal practitioner or Chartered Accountant and of Government, to appoint presenting officers
(1) A person preferring an appeal to the Appellate Tribunal under this Act may either appear in person or take the assistance of a legal practitioner or a Ch...
33Members, etc., to be public servants
The Chairperson, Members and other officers and employees of the Appellate Tribunal the Special Director (Appeals) and the Adjudicating Authority shall be de...
34Civil court not to have jurisdiction
No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which an Adjudicating Authority or the Appellate Tribunal...
35Appeal to High Court
Any person aggrieved by any decision or order of the Appellate Tribunal or the Special Director (Appeals) may file an appeal to the High Court within sixty d...
36Directorate of Enforcement
(1) The Central Government shall establish a Directorate of Enforcement with a Director and such other officers or class of officers as it thinks fit, who sh...
37Power of search, seizure, etc.
(1) The Director of Enforcement and other officers of Enforcement not below the rank of an Assistant Director shall take up for investigation the contraventi...
38Empowering other officers
(1) The Central Government may, by order and subject to such conditions and limitations as it thinks fit to impose, authorize any officer of customs or any c...
39Presumption as to documents in certain cases
a. is produced or furnished by any person or has been seized from the custody or control. of any person, in either case, under this Act or under any other la...
40Suspension of operation of this Act
(1) If the Central Government is satisfied that circumstances have arisen rendering it necessary that any permission granted or restriction imposed by this A...
41Power of Central Government to give directions
For the purposes of this Act, the Central Government may, from time to time, give to the Reserve Bank such general or special directions as it thinks fit and...
42Contravention by companies
(1) Where a person committing a contravention of any of the provisions of this Act or of any rule, direction or order made thereunder is a company, every pers...
43Death or insolvency in certain cases
Any right, obligation, liability, proceedings or appeal arising in relation to the provisions of section 13 shall not abate by reason of death or insolvency ...
44Bar of legal proceedings
No suit, prosecution or other legal proceedings shall lie against the Central Government or the Reserve Bank or any officer of that Government or of the Rese...
45Removal of difficulties
(1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order, do anything not inconsistent with the prov...
46Power to make rules
(1) The Central Government may, by notification, make rules to carry out the provisions of this Act. (2) Without prejudice to the generality of the foregoing ...
47Power to make regulations
(1) Reserve Bank may, by notification, make regulations, to carry out the provisions of this Act and the rules made thereunder : (2) Without prejudice to the...
48Rules and regulations to be laid before Parliament
Every rule and regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for...
49Repeal and saving
(1) The Foreign Exchange Regulation Act, 1973 (46 of 1973) is hereby repealed and the Appellate Board constituted under sub-section (1) of section 52 of the ...
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