In terms of Section 28(1) of FERA 1973, foreign companies and foreign nationals (whether resident in India or not) are required to obtain permission of Reserve Bank for acting or accepting appointment as agent in India of any person or company in the trading or commercial transactions of such person or company. Such permission was also required under Section 28(3) of the Act in cases where appointments as agents were held by foreign companies/foreign nationals since prior to the coming into force of the Act, i.e., 1st January 1974 and were continuing thereafter. Applications for permission to act or accept appointment as agents in India should be made in form FNC 1 to the Central Office of Reserve Bank (Foreign Investment Division).

NOTES: A. The term agent includes any person or company (including its branch) buying goods with a view to selling them before any processing thereof. The term processing has the meaning assigned to it in Explanation (c) under Section 28 of the Act.

B. See paragraph 11A 12 for details regarding exemption granted to foreign nationals of Indian origin permanently resident in India.