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September 2009

A.P. (DIR Series) Circular No. 6, dated August 3, 2009 — Memorandum of Instructions governing money-changing activities

By Pinky Shah, Sonalee Godbole, Gaurang Gandhi, Nimesh Dedhia, Vijay Kewalramani
Chartered Accountants
Reading Time 1 mins
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Spotlight – Part C

Part C : RBI/FEMA


Given below are the highlights of RBI Circulars.

  1. A.P. (DIR Series) Circular No. 6, dated August 3, 2009 —
    Memorandum of Instructions governing money-changing activities

Presently, Authorised Dealers/FFMC are required to obtain
certain documents, including a conduct certificate from the local police
authorities, while conducting the due diligence of their agents/franchisees.
However, they have been experiencing difficulties in obtaining conduct
certificate from local police authorities in respect of agents/franchisees,
which are incorporated entities.

This Circular has done away with the requirement of
obtaining conduct certificate from local police authorities in respect of
agents/franchisees, which are incorporated entities. Henceforth, Authorised
Dealers/FFMC have been permitted to accept certified copy of the Memorandum
and Articles of Association and Certificate of Incorporation in lieu of
conduct certificate from the local police authorities, in respect of
agents/franchisees, which are incorporated entities.

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