 bill no u f i"" the foreign exchange regulation (amendment) bill, 1964 a billfurthet to amend the foreign exrnll lfle regulation act 1947 be it enacted by parliament in : he }t'i:teenth yeal' of the repuhlic of india as follows:-1 (1) this act may be called the foreign exchange regulation short title (amendment) act, 1964 and commence-s (2) it shall come into force on such date as the central govern- ment ment may, by notification in the oftlcial gazette, appoint z in sub-aection (2) of section 1 of the foreign exchange regula- amedd-7 of 1947 tion act, 1947 (hereinafter referred to as the principal act), the meat of words "and to bran~hes and agencies outside india of companies or section 1 10 bodies corporate registered or incorporated in india" shall be inserted at the end 3 in section 2 of the principal act,-amend_ mentol section 2 2 of 1934 is (i) in clause (g), the words, figures and letter "but does not include special bank notes jlnd ~ecial one-rupee notes issu£a under section 28a of the reserve bank of indiaact, 1934" shall be inserted at the end; \ (ii) after clause (0), the following clause shall be inserted, namely:-~i' :~  ii~ ' "1",", ',-,< - (gg) "indian customs wrter( means the -!v'aters exten~ ing into the sea to a distance of twelve nautical miles mea-~ j,o 986 (b) ls-l sured from the appropriate base line on the coast of india and includes any bay, gulf, harbour, creek or tidal river;'; (iii) in clause (k), after the words and figures "public debt act, 1944,", the words and figures "savings certificates to which' the government savings certificates act, 1959, applies," shall be s 46 of 1959 inserted 4 after section 2 of the principal act, the following sections shall be inserted, namely:-insertion of new sections 2aand 2b ofticers of enforcement "2a the central government may appoint a director of enforcement and as many deputy directors of enfor('cment, 10 aasijtant ~dors of enforcemen: and such other officers 85 it thidkl fit to be 08icers of enforcement for the purpose of enforcing the provisiona of this act' entrustmentof functions of director or other officer of enforcement amend_ mental section 4 2b the central govern~nt may, by order and subject to such limitations and conditions as it thinks fit to impose, autho- 15 rise any officer of enforcement, or any officer of customs or any central excise officer or any police officer or any other officer of the central government or a state government to exercise such of the powers and discharge such of the duties of the director of enforcement or any other officer of enforcement under this act 20 as may be specified in the order" 5 in section 4 of the principal act, in sub-section (1), for the words "buy or borrow from", the words "buy or otherwise acquire or borrow from" and for the words "sell or lend to", the words "sell or otherwise transfer or lend to" shall be substituted 2s 6 in sub-section (1) of section 5 of the principal act, after clause (a), the following clause shall be inserted, namely:-amend mentol sections " (aa) receive, otherwise than through an authorised dealer, any payment by order or on behalf of any person resident outside india;" 30 amend_ mentof :::ection 8 7 in section 8 of the principal act, in sub-section (2), after the words "any gold", the word "fewellery" shall be inserted, and for the words "obtained from an authorised dealer", the words "obtained by him from an authorised dealer" shall be substituted amendmentol section 10,' 8 in sub-section (1) of section 10 of the principal act, in the 35 opening paragtaph, for the words "do or l'efrain from doing any act with intent to secure-aj, !he 1vorfh "do or ·l'efrain from doing anything 0" :·~'i~~~ 6r refrainjrom taking any action which 'has the effect of 8a;~: i"j' tildall be substituted t in sub-section (2) of section 12 of the principal act, in the amend opening paragraph, for the words "do or refrain from doing any act me~t of  with intent to secure that-", the words ,jdo or refrain from doing section 12 anything or take or refrain from taking any action which has the 5 effect of securing that-if shall be substituted amend-10 in section 13 of the principal act, in sub-section (4) ,-ment of (i) in clause (b), the word "or"fibail bl! inserted at the end; section 13 (ii) after clause (b), the following clause shall be insert~d, namely:-10 "(c) transfer any share from a register outside india to a register in india" 11 in section 17 of the principal act,-amendment of section 17 (4) in sub-section, (1) ,-15 (i) for the words "settle any property, otherwi!le than by will, so that a person who at the time of the settlement", the words "settle, or make a gift of, any property so that a person who at the time of the settlement or the making of the gift" shall be substituted; (ii) the words ",other than by will," 5hall be omitt~di 20 (b) for sub-section (2), the following sub-section shall be substituted, namely:-30 "(2) any settlement or gift made or any power exercised as aforesaid without the permission, of the resen:e ba~ shall not be invalid merely on the ground that such permission has not been obtained, but no payment or remittance in pursuance of such settlement, gift or power shall ~ made to, or for the credit of, or on behalf of any person resident outside india, elsewhere than in territories notified by the reserve bank, except with the general or special permission of the reserve bank which may be granted conditionally ql' unconditionally" 35 12 in section 18 of the principal act, after gub-~ection (3b) the amendfollowing sub~tion shall be inserted, namely: -ment of section 18   , "(3c) except with the general or speclal,permis~i~n of the central gov8j1uilent or the reserve bank, no person resi~nt in india shall give a guarantee in respect of aqy debt or" other obligation or liability of a person resident out!l~~ 'l::·-'~'·:;:t;' 13 after section 18 of the principal act, the following section!! shall be inserted, namely:-insertion of new sections 1ba and lab "18a without prejudice to the provisions of section 21 and notwithstanding anything contained in any other provision of this act, a company (other than a banking company) which is 5 not incorporated under any law in force in india or which is controlled directly or indiiectly by persons resident outside india, or any branch or office of any such company in india, or a firm consisting wholly or in part of persons resident outside india, shall not accept appointment as-10 restriction on appointmento! certain companies anciflrms as agents ortechnical advisers in india (a) agent in india of any person, company or firm in the trading or commercial tranaactions thereof or (b) technical or management adviser in india of any person, company or firm, except with the general or special permission of the central gov- 15 ernment or the reserve bank; and where such appointment is aceepted without such permission, it shall be void 18b no airline, shipping company or travel agent shall, except with the general or special permission of the reserve bank and subject to such conditions, if any, ali may be specified 20 therein, book for any person a passage for a journey the whole or any part of which is outside incha" ,i u in section 19 of the principal act, sub-sections (3) and (4) shall be omitted -rerulationof booking ofpa's-aaguoutside india amendmentof section 19 15 sections 1&1\ and 19b of the principal act shall be re-num- 25 bered as sections 190 and 19h respectively and-insertion of new 'sections 19ato 19f (4) before section 19g as so re-numbered, the following hctions ,hall be inserted, namely:-power to seareb au8'pecled pertonl '19a (1) if any officer of enforcement authorised in this behalf by the central government, by general or spe- 30 cial or~er, has reason to believe that any person has sec-i reted about his person any documen~s which will be useful : frr or relevant to any pro~eeding under this act, he may l  search that i penon - " '   ' (2) ~en any qice~ of enforcement is about to search 35 any ,p+n under ,thlt provisions of this section, the officer of enforceme~t shall, if such person so requires, take such person without unnecessary delay to the nearest gazetted officer of enforcement superior in rank to him or a magistrate 5 (3) if such requisition is made, the officer of enforcement may detain the person making it until he can bring him before the gazetted officer of enforcement or magistrate referred to in sulhection (2)  10 (4) the gazetted officer of enforcement or the magistrate before whom any such person is brought shall, if he sees no reasonable ground for search, forthwith discharge the person but otherwise shall direct that search be made (5) bef~re making a search under the provisions of this section, the officer of enforcement shall call upon two or more persons to attend and witness the search and may issue an order in writing to them or any of them so to do; and the search shall be made in the presence of such persons and a list of all documents seized in the course of such search shall be prepared by such ot1lcer or other person and signed by such witnesses 20 (6) no female shall be searched by anyone excepting a female (7) in this section and in sections 19c to 19g, the ekpression "document" includes indian currency, foreign exchange and books of account 19b (1) if anyoftlcer of enforcement authorised in this power to behalf by the central government by general or special arrest order, has reason to believe that any person in india or within the indian customs waters has been guilty of an offence punishable under this act, he may arrest such person and shall, as soon as may be, inform him of the grounds for such arrest (2) every person arrested under sub-section (1) shall, without unnecessary delay, be taken to a magistrate 35 (3) where any om~~r of enfqrcement ·luts arrested any person under sub-section (1), he shall, for the purpose of releasing such person on bail or otherwise, have the same powers and be subject to the same provisions as the officerin~harge of a police station ha~, and is subject to, under the code of criminal procedure, 1898 power to stop and search conveyances 19c where an officer of enforcement authorised 10 this behalf by the central government by general or special order, has reason to believe that any aircraft vehicle or animal in india or any vessel in india or within the indian customs waters has been, is being, or is about to be, used in s the commission of an o1fen~ under this act, or that any documents which will be useful for or relevant to any proceeding under this act is secreted therein, he may at any tim~ stop any such vehicle or animal or vessel or, in the case of an aircraf~ compel it to land, and-10 (a) rummage and search 8lly part of the aircraft vehicle or vessel; (b) exam!ne and search any goods in the aircraft, vehicle or vessel or on the animal; (c) seize any such document as is referred to above; is (d) break open the lock of any door or package for exercising the pgwers conferred by clauses (a), (b) and (c) if the keys are withheld power to search premises 19d (1) if an officer of enforcement not below the rank of assistant director of enforcement, has reason to 20 believe that any documents which in his opinion will be useful for or relevant to any proceeding under this act, are secreted in any place, he may authorise any officer of enforcement to search for and seize or may himself search for and seize such documents 25 (2) the provisions of the code of criminal procedure, 1898 relating to searches shall so far as may be, apply to 5 of 188 searches under this section subject to the modification that sub-section (5) of section 165 of the said code shall have ef!ect as if for the word "magistrate", wherever it occurs, 30 the words "director of enforcement or other officer exercising his powers", were substituted power to examine persons 19e the director of enforcement may, during the , course of any inquiry in conllection with any offence under this act-"  35 (a) require any person to produce or deliver any document relevant to the inquiry; (b) examine any person acquainted with the facts and circumstances of the case 19f (1) the director of enforcement shall have power power to te summon any person whose attendance he considers ne- summon cessary either to give evidence or to produce a document ~sons to in any inquiry which such officer is making in connection lid ve evl-d   ence an 5 with any offence under this act produce (2) a summons to produce documen~s may be for the docuproduction of certain specified documents or for the pro- ments ductlon of all documents of a certain description in the possession or under the control of the person summoned 10 (3) all persons so summoned shall be bound to attend either in person or by an authorised agent, as such officer may direct; and all persons so 8ummoned shall be bound to state the truth upon any subject respecting which they are examined or make statements and produce such documents is as may be required: 5 of 1908 provided that the exemption under section 132 of the code of civil procedure 1908, shall be applicable to any requisition for attendance under this section 20 (4) every such inquiry as aforesaid shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of the indian penal code'; 45 of 1860 (b) in section 190 as so re-numbered, 30 3s 40 (i) for the words, brackets and figures, "where, in pursuance of an order made under sub-section (2) of section 19 or of 8 search warrant issued under sub-section (3) of the said section, any book oil" other document is furnished or seized, and the director of enforcement has reasons to believe that the said document would be evidence of the contravention of any of the provisions of this act or of any rule, direction or order made thereunder, and that it would be necessary to retain the document in his custody, he may so retain the said document for a period not exceeding four months or if, before the expiry of the said period of four months, any proceedings under section 23-", the following shall be substituted, namely: _ l "where in pursuance of an order made under subsection (2) of section 19 or of the provisions of section i9a, 19c or 19d, oil" of a :requisition or summons under section 19e or 19f, any document is furnished or seized and the director of enforcement or any other officer of enforcement has reason to believe that the said document would be evidence of the contravention of any of the provisions of this act or of any rule, direction or order made thereunder, and that it would be necessary to retain the document in his custody, he may so retain the said document for a period not exceeding ~ one year or if, before the expiry of the said period of one year, any proceedings under section 23-"; s (ii) in clause (a), for ,~he words "including the proceedings before the appellate board, if any", the words "including the proceedings, if any, before the appellate board and the high court" shan be substituted (c) after section 19h as so re-numbered, ute following sec- 10 tions shall be inserted, namely:-'191 (l) if in the course of an inquiry under this act, the director of enforcement is of the opinion that the contents of any document in his possession or control would be useful for, or relevant to, any proceeding which is in pro- is gress or may ,be started under any other law for the time being in force, he may disclose such document or any information contained therein as he thinks fit to an ofticer duly authorised by or under such other law prohibition of dl8ciolure ofdocumenta or informationexcept in certain cases speeial provision regarding certain dealing inforeild exchange (2) if any officer of enforcement, except in the dis- 20 charge in good faith of his duty as such ofticer in accordance with sub-section (1), or in compliance with any requisition made under any law for the time being in force, discloees any document or information oftained by him in his ofticial capacity in the' course of any inquiry under this act, he 2s shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand il"upees, or with both 19j (1) if any pen;on is found or is proved to have been in possession of any foreign exchange exceeding in value,30 two hundred and fifty rupees, the burden of proving that the foreign exchange came into his possession lawfully shall be on him (2) notwithstanding anything contained in the code of criminal procedure, 1898, any police officer not below the 3' 3 of 1898 rank of inspector of police or any other oftlcer of the central government or a state government authorised by the central government in this behalf may enter any public place and search and arrest without warrant any person found therein who is reasonably suspected of having com- 40 mitted or of committing or of being about to commit a con- i travention of sub-section (1) of section 4 ezpianatidn-for the purposes of this sub-section, the expression "public place" includes any public conveyance, any hotel, any shop or any other place intended for use by, or accessible to, the public (3) where any person is arrested under sub-section (2) by an officer other than a police ofticer, such oftlcer shall, without unnecessary delay, take or send the person arrested before a magistrate having jurisdiction in the case or before the officer-in-charge of a police station rj of 1898 -10 (4)· the provisions of the code of criminal procedure, 1898, shall, subject to the provisions of this section, apply, so far as may be, in relation to any entry, search or arrest, made under this section (5) the provisions of this section shall have effect notwithstanding anything inconsistent therewith contained in any other provision of this act' is 1& in section 22 of the principal act, for the word, figures and ameddlletter "section 19b", the word, figure, and letter "section 19h" shall m~t of be substituted section 22 20 17 in section 23 of the principal act,-amend-(a) in sub-section (j), for the words, figures and brackets ment of "if any person contravenes the provisions of section of, section 5, section 21 section 9 or sub-section (2) of section 12", the following shall be substituted, namely:-"if any person contravenes the provisions of section 4, section 5, section 9, section 10, sub-seclion (2) of aection 12, section 17, section l8a or section l8b"; (b) for sub-section (ia), the following sub-section shall be substituted, namely:-"(1a) if any person contravenes any of the provisions of this act or of any rule, direction or order made thereunder, for the contravention of which no penalty is expressly provided, he shall, upon conviction by a court, be punishable with imprisonment for a term which may extend to two years, or with fine, or with both"; (c) in sub-section (3) ,-3s (i) after clause (a), the following clause shall be inserted, namely:-"(aa) of any offence punishable under lnb-6ectlon (2) of section 191,-966 (b) ls-2 (i) where the offence is alleged to have been committed by an oftlcer of enforcement not lower in rank than an assistant direclor of enforcement, except with the previous sanction of the central government; s (ti) where the offence m aueged to have been committed by an officer of enforcement lower in rank than an assistant director of enforcement, except with the previous sanction of the director of enforcement, or"; 10 (ii) in clause (b), for the words &n'd figures "or under section 54 of the indian income-tax act, 1922, as applied by section 19 of this act", the words, figure! and letter "or section 23f" shall be substituted 18 in section 23a of the principal act, for the words and flgur~ is amendmenfot section 231i 'under section 19 of the sea customs act, 1878, and all the provi-8 of 1878 sions of that act shall have effect accordingly, except that section 183 thereof shall have effect as if for the word "shall" therein, the word "may" were substituted', the following shall be substituted, namely:-20 "under section 11 of the customs act, 1962, and au the pro-52 of 1_ visions of that act shall have eftect accordinlly"  19 in section 23e of the principal act,-amendonent of 'n (i) in $ub-eection (1), for the words "and a~iter member", the words "and two other membets" shall be substftated; 2s (it) f~ rub-section (z), the following sub-section shah be substituted, namely:-speeial provision regarding certain deaungs inforeicn exchange "(2) any person aggrieved by 8ueh order may, alter depositing the stnn fm:poiied 1sy way of penalty under section 23 and within fotty-five days from the date on which the 30 order is sent to the person committing the contravention, prefer an a~1 to the appellate board: , provided that the appellate board may entertain the appeal-(a) after the expiry of the said pe:rfod of forty-five 3s days, if it is satisfte~ that the appellant was prevented by suftlcient cause from filing the appeal in time; 5 ~b> witbo\lt the d~posit bejng d;lade, if it is satisfied that there is sufficient reason to do so, s\l~ect to the condition that the deposit shall be made within such time before the date of the hearing of the appeal as it may anow and that the, appeal shall stand dismi~d, if the deposit is not so made"; (iii) in sub-section (3), for the words "shall be final"', the 10 wol'ds, a,urea and letters "shall, subject to the provjsiolli of section 23ee, be final" shall be substituted; (iv) after sub-section (5), the following sub-section shall ~ ~rt,ed namely:- (6) th ~ powers anc;l functio~ of the appeuafte ~oard may be exercised and discharged by benche,$ coof$istins of two members and constituted by the chairman of the appellate board: provided that if the members of the bench difter on any point or points, they shalll state the point or points on ~ ijley, fiuu~ and refer the aame to the third member for hearing on such poipt orr points and such point or points shall be decided according to the opillion of that member" 20 m~ after ~uon 2m( of the principal act, the fo1lo~ing sections insertion slwr,u :be h;wert~, ,,~ely: -of new sections 2sj:eand 23jcee u23ee an appeal shall lie to the high court only on ques-appe~l tw)ls of ~w !roul any decision or order of the appellate board to ~e \l!ld~ sur,s~ti~ (3) or sub-section (4) of ,iiec:tioll ~, ~~ 25 23eee clerical or arithmetical mistakes in any decision or correction or4er passed by the f\ppe'llate board or the director of enforce- of clerical ment under tb,is act, or errors arising therein frqql ady ace i- errors, etc d~n~ sl,ip or oplission may, at any tim"be coitected by the 30 ~ppe:uate ijo~c;i or the director of e~orcement oru successor in office, as the case may be" 2~ in sec,tiqd 23f of the principal act, after the words "appel- amendment late board", the words "or the high court" shall be inserted of section 2~ qt ~e,c~ 2~ of the priucipal act,-23f 35 (a) for the words, brackets and figures "furnished by any amendoik\fjon udder 8ubsection (2) of section ig, or has been seized ment of uu~ sub-section (8) of that section from the custody or control ;ection of 8dy person,", ~he following shall be subatituted, namely: _ fa "furnished by any person under sub-section (2) of section 19, section 19e or section 19f, or has been seiied under section l~a or bection 19c or section 19d from the custody or controi of any person,";  (b) after the words "the court", in the two places where they occur, the words, brackets, letter and figures "or the officer adjudicating under clause (ci) of sub-section (1) of section 23" 5 ahall be inserted 23 after section 25 of the principal act, the following section shall be inserted, namel~:- bertion or new aeetion 2m;"25a the following officers are hereby empowered and re-quired to assistofticers of enfotcement in the enforcement ot 10 this act, namely:-1 i certa1d oiftcento uaijt offlcers of enfol'lcement (a) officers of the customs !>epartment; (b) officers of the central excise department: (c) officers of police; ! (d) officers of the central or state governments em- 15 ployed at any port or airport; (e) such other officers of the central or state government or a local authority as are specified by the central government in this behwf by notification in the otiicial gazette" i 24 in section 27 of the principal act,-amendimentof aection 27 (0) in su~tion (2), clause (c) shall be re-iettered as clauje (d) and before the clause as so re-lettered the following clause shall be inserted, namely:-"(c) provide, subject to such conditions as may be 25 prescribed, for the publication of the names and other particulars of persons who have been found guilty of any contravention of the provisions of this act, or of any rule, order or direction made thereunderj"; (b) for sub-section (3), the following sub-section shall be 30 substituted, namely:-  (3) every rule 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 a total period of thirty days which maybe comprised in one session or two suc- 3s cesaive sessions, and if before the expiry of the session in which it is so laid or the session immediately following, both houses agree in making any modiftcation in the rule, or both houses agree that the rule should not be made the rule shall, thereafter, have effect only in such modified form or be of no effect, as the case may be; so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under  that rule'" s the foreign exchange regulation act, 1947 (7 of 19&v), was originally enacted as a temporary measure it was placed permanently on the statute book by act 39 of 1957, which, among others, provided for the appointment of the director of enforcement and the constitution of an appellate board to hear appeals against the orders of the director  2 in the light of experience gained during the last seven years, i both the directorate of enforcement and the reserve bank of india have suggested certain further amendments to the act the working of the appellate board also has shown the need for certain changes in the act it is, therefore, considered necessary to amend the act further for removing certain difficulties which have been experienced in the working of the act 3 the principal amendments proposed are as follows:-(a) to empower the reserve bank of india to control the transfer of shares of a foreign company from a register outside india to a register in india and to regulate the giving of guarantees by persons resident in india in respect of ·debts or liabilities of persons resident outside india; (b) to control and regulate payments or remittances in favour of a non-resident in pursuance of any settlement of property by will as well as by gifts; (c) to control and regulate the appointment of foreign companies, firms or branches thereof as the agents or advisers of companies and firms in india; (d) to require airlines, shipping companies and travel agents to obtain the general or special permission of the reserve bank of india in respect of international travel bookings; (e) to include provisions on the lines of rule 132a of the defence of india rules, 1962, prohibiting unauthorised dealings in foreign elrehange brought in by tourists and tightening the control over such dealings; <i> to confer additional powers on officers of the enforcement directorate similar to those conferred by the customs act, 1962, on officers of the customs department, in regard to search and arrest of persons, seaa-ch of conveyances and premises and summoning of persons to &ive evidence and produce documents, etc; (9) to mtrease the strength of the appellate ~oard from two to three memberr, and (h) to confer a right of appeal to the ibgh court 8ft ct\l'estions ef law from deeisions or orders of the appellate beltd 4 opportunity has been taken to undertake certain other amead- \ 1/ rtl-ents of a minor nature 5 the b1ll sfl!ieki to achieve these objetts niiw di:un; rile 8td 8~te1nbet, 1964  p:restbtm"s recommendation under article 117 of the constitution of india[cofjy of lettet tfo  1(22)ec/m, dated the 7th september, 1964 f~om shrl bali ram bbagat, mil'ltstet of planning to the secretary, lok sabha]: i the presideilt having been apprised of the sllbject metter of the toreign exchange regulation (amendment) bill has been pleased to recommend its consideration in the lok sabha under article 117 (3) of the constitution  l"inancial memorandumnew section 2a inserted by clause 4 of the bill providl!fj that the central government may appoint a director of enforcement and as many deputy and assistant directors of enforcement and such other officers as it thinks fit for the purpose of enforcing the provisions of the act this is an enabling provision empowering the central government to appoint the various officers in the directorate of enforce- ment since the directorate of enforcement is already in existence, no additional expenditure is expected to be incurred immediately due to this provision of the bill however, as and when the aetivities of the directorate expand, it may be necessary to increase the strength of the staff and the consequent increase in expenditure will be met by nonnal budgetary provision a budget provision of rs 9,68,600 has been made for the directorate of enforcement for the current year (1964-65) it is no~ possible to give any estimate of additional expenditure which may be incurred in future 2 clause 19 (i) of the bill provides for the appointment of a third member of the appellate board at present, the board consists of two members, and officers of the central government are appointed as members of the board in addition to their nonnal duties consequently, the addition of a third member, on the same basis, is not expected to involve any additional expenditure aaase 24 of the bill seeks to amend section 27 of the act (relating to power of the central government to make rules) so as to provide for the making of rules for the publication of the names and other particulan of periods who have been found guilty of any contraven  tian of the provisions of the act or of any rule, order or direction made thereunder this is a matter of procedure the delegation of legislative power is, therefore, of a normal character - - -  1 (1) - - - - - sibort title, extent and mencement (2) it extends to the whole of- india; and it applies also to all citizens of india outside india - - - i - j!l ' lnterpre-z in this act, unless there is anything repugnant in the subject tauon or context,-1 i - - - - - (g) "indian currency" means currency which is expressed or dnlwn in indian rupees; - - - - - (k) "security" means shares, stocks, bonds, debentures, debenture stock and government securities, as defined in the public debt act, 1944, deposit receipts in respect of deposits of 18 of 1 securities, and units or sub-units of unit trusts and includes certificates of title to securities but does not include bi1~ of exchange or promissory notes other than government promissory notes; i - - - - - beattietiona on dealingr in foreign exchange 4 (1) except with the previous general or special permission of the reserve bank, no person other than an authorised dealer shall in india and no person resident in india other than an authorised dealer shall outside india, buy or borrow from, or sell or lend to, or exchange with, any person not being an authorised dealer, any foreign exchange  - - - - - restric-5 (1) save as may be provided in and in aocordance with any tions on genervl or special exemption from the provisions of this sub-section payments which may be granted conditionally or unconditionally by the reserve bank, no person in, or resident in, india shall-(a) make any payment to or for the credit of any person resident outside india; , : - - - - - 8 (1)  ' - - - '" rettrictionson import and exportot certain currency and bullion (2) no person shall, except with the general or special' permission of the reserve bank or the written permission of a person authorised in this behalf by the reserve bank, take or send out of india any gold, or precious stones or indian currency or foreign exchange other than foreign exchange obtained from en authorised dealer  - '" '" '" '" 10 (1) no person who has a right to receive any foreign ex- dutyof change or to receive from a person resident outside india a pay- pex:'0ns ment in rupees shell, except with the general or special permission entitl~ of the reserve bank, do or refrain from doing any act with intent ~~r:~;ve to secure--{ i exchange, etc (a) that the receipt by him of the whole or part of that foreign exchange or payment is delayed, or (b) thet the foreign exchange or payment ceases in whole or in part to be receivable by him  - - '" - - u (1) '" '" '" '" '" '" payment for exported goods (2) , where any export of goods has been made to which a nati-,ftcation under ,sub-section (1) applies, no person entitled' ,to sell, or procure the sale of, the said goods shall, except with the permission of the reserve benk do or refrain from doing any act with intent to secure that-  (a) the sale of the goods is delayed to an extent which is unreasonable having regard to the ordinary course of trade, or (b) payment for the goods is made otherwise than in the prescribed manner or does not represent the full amount payable by the foreign buyer in respect of the goods, subject to such deductions, if any, as may be allowed by the reserve bank,  or is de1a1ed to such extent as aforeld: provided that no proceedings in respect of any contravention of this sub-section shall be instituted unless the prescribed period haa expired and payment for the goods representing the full amount as aforesaid has not been made in the prescribed manner - - - - - - restriction on settlement 17 (1) no person: resident in india shall, exeeptwtth the general 'or special permission of the reserve bank, settie any pr0-perty, otherwise'than by will, 90 that a penon who at the time of the settlement is resident outside india, elsewhere than in territories notified in this behalf by the reserve bank, will' have an interest in the property, or exercise, other than by wlll, any power for payment in favour of a person who at the time of the exercise of the power is resident outside india elsewhere than in such notified territories i ! (2) a settlement or eower as aforesaid shall not be invalid except in so far as it confers any right or benefit on any person who at the time of the settlement or the exercise of the power is resident outside india, elsewhere than in territories notified by the reserve bank i - - - - - - - - - power to call 19 (1) for information rt:~ tions  dealing in foreigl exchange, (3) if on a representation in writing, made by a penon authorised in this behalf by the central ~vernment or the relerve bank, a district magistrate, sub-divisiona1 magistrate, presidency map trate or magistrate af the first class, has re8lon to believe that - contravention cf any of the provisions of this act has been, or is being or is about to be, committed in any place t, restrictions on payments or that a pe1'6on to whom an order under sub-section (2) of th!a ection has been or might be addressed, will not or weald dot pro 'ce the information, book or other document, 5,  genel r where such information, book or other document is not known whiche magis!rate to be in the possession of any penon, reservtwhere the magistrate considers that the purpohlof any in-uon or proceeding under this aet will be served by a general t' inspection, he may issue a search warrant and the person to whom such warrant is directed may search or inspect in accordance therewith and seize any book or other document, and the provisions of the code of cri· s 011891 minal procedure, 1898 relating to searches under that code shall, 80 far as the same are applicable, apply to searches under this sub section: 'l ' !  ii:': fl!~i~!i;' provided that such warrant shall not be luued to any pcdice oidcer below the rank of subinspector explanauon-inl this subsection, "place" includes a house, build· lng, tent, vehicle, vessel or aircraft (4) the provlsioll8 of bub-sections (i), (2) and (3) of section 54 11 of ltd of the indian incometax act, 1922, shall apply in relation to inform· atton obtained under su~on (2) of this section as they apply to the particulars referred to in that section, and for the purposes of such applicatlon-(a) the said sub-section (3) shah be construed as if in clause (a) thereof there was included reference to a prosecu· tton for an offence under section 23 of this act, and (b) persons to whom any information is required to be fur· dished under an order made under sub-section (2) of this section shall be deemed to be public servants within the meaning of that section ita where, in pursuance of an order made under sub·section (2) cwrtody of !m'ctton 19 or of a search warrant issued under sulhection (3) of of docu· the said eection, any book or other document is furnished or seized, menu and the director of enforcement has reasons to believe that the said document would be evidence of the contravention of any of the provisions of this act or of any rule, direction or order made there under, and that it would be necessary to retain the document in hi8 custody, he may so retain the said document for a period not exceed-ing four months or if, before the expiry of the said period of four months, any proceedings under section ~ (4) have been commenced before him, until the diepoial of those proceedings, including the proceeclings before the appellate board, if any, or (b) have been commenced before a court, until the document has been ftied in that court  - - - - - '12 no person shall, when complying with any order or direction faile aderseetion ·19 or with any requirement under section 19b or when tate making jlii1y application or declaration to any authority or penon for mant penalty and procedure application of sea cutorna ac,1878 at\y purpose julder this act, give any information q~ jilake any statement which he krows or has reasonable cause to believe to be false, or not true, in any material particular ,23 (1) if any person contraven,es the provisions of section 4, section 5, section 9 or sub-section (2) of section 12 0,1:' of any'ruj,e, direction ,~r order made thereunder, he shall-- - - •• (1 a) whoever contravenes-(a) any of the provisions of this act or of any rule, direc-, tion or order made thereunder, other, than ~hose j;e!ferred to in sub-section (1) of this section and section 19 shall, upon conviction by a court, be punishable with imprisonment for a term : which may extend to two years, or with fine, or with botla; (b) any direction or order made under section 19 shall, upon conviction bya court, be punishable with fine which may extend to two thousand rupees - - - - - (3) no court shall take cognizance-- - - - - (b) of any offence punishable under sub-section (la) of this section or under section 54 of the indian income·tax act, 1922, as applied by section 19 of this act, except upon complaint 11 of 1922 in writing made by the director of enforcement or any officer authorised in this behalf by the'central government or the reserve bank by a genera'l or special order: provided that where any such offence is the contravention <>f any of the provisions of this act or any rule, direction or order made thereunder which prohibits the doing of an act without permission, no such complaint shall be made unless the person accused of the offence has been given an opportunity of' showing that he had ,such permission - - - - - 23a without prejudice to the provisions of section 23 or to any other provision contained in this act, the restrictions imp~ed by sub·sections (1) and (2) of sec'tion s sub-section (1) of section 12 and clause (a) of sub-section (1) of section 13 shall be deemed to have been imposed under section 19 of the sea customs act, 1878, 8 of 1878 add all the provisions ctfthat act shall have effect accordingly, except that section 183 thereof shall have effect as ''shall" thej1ein the word "may" were substituted if for the word - - - - - 23e (1) the central government may, by notification in the appeals official gazette, constitute an appellate board to be called the foj;'eign e~change regulation apwu~te board'cqdsisting,of· a chair-:man and another member to ,be appaint~ by the central govera· ,ment for lleadng ~ppeals against the ol'ders flt'the director· of  (in" torcement made under section 23 -(2) any pereon aggrieved by such an order may, after depositin; the sum imposed by way of penalty under section 23, and within thirty days from the date of the order, prefer an appeal to the appellate board: provided that the appellate board may entertain the appeal after the expiry of the said period of thirty' days, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal in time (3) on receipt of an appeal under sub-section (2), the appellate board may, after calling for a report from the director of enforcement and nfter making such further inquiry as it thinks fit, confirm, modify or set aside the order appealed against, and the decision of the appellate board shall be final; and if the sum deposited by way of penalty under sub-section (2) exceeds the amount directed to be paid by the appellate board, the excess amount shall be refunded - - - - - 23f if any person fails to pay the penalty imposed by the director penalty of enforcement or the appellate board, or fails to comply with any of for contheir directions or orders, he shall, on conviction before a court, be travention punishable with imprisonment for a term which may extend to two ~:d~~~ years, or with fine or with both director - - - - - of enfor_ cement , , andappellate board 24a where any document is furnished by any person under sub- l!esumpsection (2) of section 19, or has been seized under sub-section tdlon as to  ocuments (3) of that section from the custody or control of any person, and incertain such document is tendered by the prosecution in evidence against cases him, the court shau, unles the contrary is proved by any such person, presume--(a) the truth of the contents of such document; (b) that the signature and every other part of such document which purports to be in the handwriting of any particular person or which the court may reasonably assume to have been signed by, or to be in the handwriting of, any particular person, is in that person's handwriting, and in the case of a document stamped, executed or attested, that it was duly stemped and executed or attested by the person by whom it purports to have been so executed or attested 27 (1)· - - - - power to (3) all rules made under this act shall be laid for not less than make thirty days before ,both houses of parliament as soon as possible after rules they are made and sha'll be subject to such modifications as parliament r:ijuji make du'ridg the session in which they are 60 laid or the session immediately following,  a bill further to amead the foreign bxchange regulation act, 1947(shri t t kris1zrtamac}lqri, minister of finanu) 