law: Foreign Exchange Management Act, 1999 
  10. Authorized 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 in foreign securities, as an authorized dealer, money
  
  changer or off-shore banking unit or in any other manner as it deems fit.
  (2) An authorization under this section shall be in writing and
  
  shall be subject to the conditions laid down therein.
  (3) An authorization granted under sub-section (1) may be
  
  revoked by the Reserve Bank at any time if the Reserve Bank is satisfied that- 
  1. it is in public
  
  interest so to do; or
  2. the authorized
  
  person has failed to comply with the condition subject to which the
  
  authorization was granted or has contravened any of the provisions of the Act
  
  or any rule, regulation, notification, direction or order made  thereunder :
  Provided  that no such authorization shall be revoked on any ground
  
  referred to in clause (b) unless the authorized person has been given a
  
  reasonable opportunity of making a representation in the matter.
  (4) An authorized person shall, in all his dealings in foreign
  
  exchange or foreign security comply with such general or special directions or
  
  orders as the Reserve Bank may, from time to time, think fit to give, and,
  
  except with the previous permission of the Reserve Bank, an authorized person
  
  shall not engage in any transaction involving any foreign exchange or foreign
  
  security which is not in conformity with the terms of his authorization under
  
  this section.
  (5) An authorized person shall, before under-taking any
  
  transaction in foreign exchange on behalf of any person, require that person to
  
  make such declaration and to give such information as will reasonably satisfy
  
  him that the transaction will not involve, and is not designed for the purpose
  
  of any contravention or evasion of the provisions of this Act or of any rule,
  
  regulation, notification, direction or order made thereunder ,
  
  and where the said person refuses to comply with any such requirement or makes
  
  only unsatisfactory compliance therewith, the authorized person shall refuse in
  
  writing to undertake the transaction and shall, if he has reason to believe
  
  that any such contravention or evasion as aforesaid is contemplated by the
  
  person, report the matter to the Reserve Bank.
  (6) Any person, other than an authorized person, who has
  
  acquired or purchased foreign exchange for any purpose mentioned in the
  
  declaration made by him to authorized person under sub-section (5) does not use
  
  it for such purpose or does not surrender it to authorized person within the
  
  specified period or uses the foreign exchange so acquired or purchased for any
  
  other purpose for which purchase or acquisition of foreign exchange is not
  
  permissible under the provisions of the Act or the rules or regulations or
  
  direction or order made thereunder shall be deemed to have committed contravention of the provisions of the Act for the purpose of
  
  this section.