Who is an authorized person under Foreign Exchange Management Act, 1999 and what are his obligations ?

The term 'authorised person' is defined under Section 2(c) of the Foreign Exchange Management Act, 1999, to include an authorised dealer, money changer, offshore banking unit or any other person for the time being authorised under sub-section (1) of section 10 of the Act to deal in foreign exchange or foreign securities. Obligations of an Authorised Person: Authorised persons are required to comply with the directions of the Reserve Bank of India with regard to his dealing in foreign exchange or foreign security receipt with the previous permission of the Reserve Bank of India. Authorised persons are required not to engage in any transaction involving any foreign exchange or foreign security which is not in conformity with the terms of his authorisation. An authorised person, before undertaking any transaction on behalf of any person shall, require that person to make such declaration and give such information as will reasonably satisfy the authorised person that the transaction will not involve or is not intended to violate or contravene any provisions of the Act, rules, notification or directions. In case, the person refuses to comply with such requirements or makes only unsatisfactory compliances, the authorised person is duty bound to refuse in writing to act on behalf of such person in such transaction and report the matter to Reserve Bank of India.