BAJAJ BROKING
In the realm of foreign exchange, the Reserve Bank of India (RBI) doesn’t solely manage all transactions. Consequently, the RBI has entrusted its powers to authorised persons under FEMA (Foreign Exchange Management Act). These authorized individuals are empowered to engage in foreign exchange and international securities transactions. This brings us to the pivotal role played by FEMA in regulating and facilitating foreign exchange activities, ensuring a smooth and compliant functioning of the financial ecosystem in India.
The Foreign Exchange Management Act (FEMA) is a pivotal regulatory framework in India that meticulously oversees the management of foreign exchange. The Reserve Bank of India (RBI) has been entrusted with the authority to designate specific individuals or entities as authorised persons under FEMA section 10 for conducting transactions involving foreign securities.
These sub-brokers under FEMA as defined in FEMA Section 2(c), encompass a diverse range of entities, including offshore banking units, money changers, and approved dealers. These entities possess the legal authorization to engage in the trading of foreign securities and foreign exchange within the country’s boundaries. FEMA’s provisions are instrumental in maintaining the integrity and efficiency of India’s foreign exchange operations.
Also Read: Authorised Person Exam
It is crucial to recognize that the roles and responsibilities of these authorized persons may vary based on their specific authorizations, updates in policy and the regulatory landscape at any given time.
To become an Authorized Person under FEMA in India, individuals or entities must apply for authorization through the Reserve Bank of India (RBI). The application process typically involves submitting necessary documentation, demonstrating financial stability, and complying with RBI’s eligibility criteria. Once approved, the RBI grants the authorization, specifying the scope and nature of foreign exchange-related activities that the Authorized Person can undertake.
Also Read: Roles And Functions Of Sub brokers
Under FEMA, RBI plays a pivotal role in regulating and overseeing foreign exchange transactions. Its functions include issuing guidelines and regulations, granting authorization to authorised persons, managing foreign exchange reserves, monitoring capital flows, and ensuring compliance with foreign exchange regulations. RBI also acts as a central authority to maintain stability in the foreign exchange market and safeguard India’s external trade and payment mechanisms.
In summary, FEMA is India’s regulatory framework for foreign exchange transactions, and authorised persons, such as banks, help facilitate these transactions. The RBI supervises and authorizes these entities, ensuring compliance. This system fosters efficient foreign exchange management, promoting stability and serving the needs of businesses and individuals.
Share this article:
Share Market Today | Gift Nifty Signals 100-Point Gap Down, Nifty to Consolidate
06 Sep, 2024 | 4 Min. read
KEC International Secures ₹1,423 Cr Transmission Line Order in Saudi Arabia
06 Sep, 2024 | 1 Min. read
Ashoka Buildcon’s Viva Highways Monetises Pune Land for ₹453 Crore
06 Sep, 2024 | 2 Min. read
Peak Partners To Sell 11% Stake in Indigo Paints via Block Deal
06 Sep, 2024 | 2 Min. read
US Initial Jobless Claims Drop to 227,000 in August.
06 Sep, 2024 | 1 Min. read
Commodities Market Today | WTI Crude Steady at $69.18, Gold Rises 0.8% to $2,546
06 Sep, 2024 | 1 Min. read
Gold Rate Today | Gold Rises 0.8% to $2,546, Silver Gains 2% to $29.14
06 Sep, 2024 | 2 Min. read
Vodafone Idea Share Price Falls 11% After Goldman Sachs Report
06 Sep, 2024 | 1 Min. read
Suzlon Energy Share Price Rises After Corporate Office Sale
06 Sep, 2024 | 1 Min. read
Why is the Stock Market Down Today? Key Factors Explained
06 Sep, 2024 | 1 Min. read
Sona BLW Precision Forgings Plans ₹2,400 Crore QIP at ₹675-700 per Share
05 Sep, 2024 | 1 Min. read
Commodities Market Today | Crude Oil Drops, Brent Hits Low; Gold and Silver Rise
05 Sep, 2024 | 1 Min. read
Analysis to Become a Pro Investor
28 Dec, 2023 | 4 Min. read
Women In Real Estate Investing (Investree)
28 Dec, 2023 | 5 Min. read
How To Check Prudent Corporate Advisory IPO Allotment Status
27 Dec, 2023 | 3 Min. read
How To Boost Credit Score? – Steps to Improve Creditworthiness
27 Dec, 2023 | 4 Min. read
Advantages and Disadvantages of Opening Multiple Demat Accounts
26 Dec, 2023 | 4 Min. read
7th CPC LTC: Leave Travel Concession Rules for Central Government Employees
26 Dec, 2023 | 4 Min. read
7th Pay Commission: House Building Advance (HBA) Interest Rate FY 2023-24
26 Dec, 2023 | 5 Min. read
The Future of Trading: Exploring Bajaj Broking’s Demat Features
26 Dec, 2023 | 6 Min. read
7th Central Pay Commission Cpc Fitment Table
23 Dec, 2023 | 7 Min. read
Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading