 the foreign exchange regula- tion (amendment) bill, 1958(as introdvced in v)i< sabha)  the foreign exchange regulation (amend- ment) bill, 1958 (as introduced in lok sabha)a bill  further to amend the foreign exchange regulation act, 1947 be it enacted by parliament in the ninth year of the republie of india as follows:-1 this act may be called the foreign exchange regulation short title (amendment) act, 1958 1947, the following section shall be substituted, namely:-s 2 for section 13a of the foreign exchange regulation act substitution 'of new section for section 13 a 10 is "13a notwithstanding anything contained in any other restrictio~ law or in any contract, agreement or other instrument, the:: ie:=~~f holder of any government security, as defined in the public cer~a!n se-debt act, 1944, created and issued for the purpose of raising a cuiltjes public loan before the 15th day of august, 1947, in respect of which the principal or interest or both are for the time being payable outside india in any country or place notified in this behalf by the central government shall not be entitled, except with the general or special permission of the reserve bank, to have any such payment made at any place in india explanation-in this section, "holder" shall have the same meaning as in clause (a) of sub-~ction (5) of section 13"  statement of objects and reasonssection 13a of the foreign exchange regulation act as it now stands empowers government to prohibit the holder of a notified security payable outside india in a notifi~d country from having the payment of such security made in india without the permission of the reserve bank the intention was only to empower the governm~nt of india to regulate the transfer of government of india securities issued prior to 15th august, 1947, so that they could not be transferred to india for payment of interest and principal in india except with the consent of the government of india section 13a wasj ho~ver, couched in very general terms and it has been pointed out that it is open to government under the powers vested in them by this sectiorl' to notify at any time that repayment of a loan made by a foreign investor to an indian company would not be permit~d even in india without the specific approval of the reserve bank this might create some misapprehension among foreign investors and it is desirable to remove such misapprehension it is accordingly proposed to am~nd this section by limiting its applicability specifically to "government securities" as defined in the public debt act, 1944, relating to the loans floated before the 15th august, hj47, arid payable outside india in any country or place notified in this behalf by the central government the bill f>eeks to achieve this object new tiethij the 3rd decimibb, 1958 morarji desai  extracts from the foreign exchange regulation act 1947 (no7 of 1947) - • - •r"irulatioq of cxpol t and tra'lsfer of accurities 13 - - - - - (5) for the purposes of this section,-(a) "holder" in relation to a bearer security means the person having physical custody of the security; provided tbat, where a bearer security is deposited with any person in a locked or sealed receptacle from which the person with whom it is deposited is not entitled to remove it without the authority of some other person, that other person shall be deemed to be the holder of the security; - - - - 13a (1) notwithstanding anything contained in any other law restrictions or in any contract, agreement or othe;r instru~ent" the holder  ,of r: :;:~c;n~f any seeurity or class of securities notified hi this behalf by the ccttain ic-central government in respect of which the principal or interest curh,cs or both is for the time being payable outside india in any country or place so notified shall n:>t be entitled, except with the general or special permission of the r(::serv(> bank, to have any such payment made at any place in ~nclia (2) in this section, the expr(>ssions "holder" and "security" shall have the 9ame meanings as in sub-section (5) of section 13  - - - • - -  a billfurther to amend the foreign exchange regulation act, 1947 (shri morarji desai, minister of finance) , 