law: Foreign Exchange Management Act, 1999 
  3. Dealing in foreign exchange, etc. 
  Save as otherwise provided in this Act, rules or regulations
  
  made thereunder , or with the general or special
  
  permission of the Reserve Bank, no person shall- 
  1. deal in or transfer any foreign exchange or
  
  foreign security to any person not being an authorized person;
  2. make any payment to or for the credit of any
  
  person resident outside India in any manner;
  3. receive otherwise through an authorized
  
  person, any payment by order or on behalf of any person resident outside India
  
  in any manner;
  Explanation.- For the purpose of this clause, where any person
  
  in, or resident in, India receives any payment by order or on behalf of any
  
  person resident outside India through any other person (including an
  
  authorized person) without a corresponding inward remittance from any place
  
  outside India, then, such person shall be deemed to have received such payment
  
  otherwise than through an authorized person;
  b. enter into any
  
  financial transaction in India as consideration for. or in association with
  
  acquisition or creation or transfer of a right to acquire, any asset outside
  
  India by any person.
  Explanation. - For the purpose of
  
  this clause, "financial transaction" means making any payment to, or
  
  for the credit of any person, or receiving any payment for, by order or on
  
  behalf of any person, or drawing, issuing or negotiating any bill of exchange
  
  or promissory note, or transferring any security or acknowledging any debt.