EXCHANGE CONTROL ACT, 1953
DEALINGS WITH SPECIFIED PERSONS AND IN RESTRICTED CURRENCIES


This ECM Notice shall apply to all dealings and transactions relating to Specified Persons, Specified Accounts, Specified Securities and Restricted Currencies.

GENERAL PERMISSION

1. The Controller hereby gives permission, subject to the condition in paragraph 3, for a financial institution to continue maintaining an existing account of a Specified Person.

REQUIREMENT FOR PRIOR PERMISSION

2. The prior permission of the Controller is required for -

2.1 Specified Persons to open any account with a financial institution;

2.2 Residents to make or receive payments vis-a-vis Specified Persons;

2.3 Residents to make or receive payments in Restricted Currencies;

2.4 Residents to deal in Restricted Currencies;

2.5 Residents to export to Specified Persons unless approved specifically by relevant Government authorities and such approved exports are required to comply with the provisions in ECM 5;

2.6 Residents to enter into, effect or complete any transaction relating to Specified Securities or to which Specified Persons are a party, or affecting securities held by or on behalf of Specified Persons; or

2.7 Financial institutions to-

2.7.1 Effect any credit and debit to a Specified Account;

2.7.2 Extend credit facilities for any purpose or enter into forward exchange contracts with, or on behalf of, Specified Persons; or

2.7.3 Permit drawdowns and performance of any existing credit facility and forward exchange contracts by, or on behalf of, Specified Persons directly or indirectly.

CONDITIONS FOR FINANCIAL INSTITUTIONS

3. A financial institution is required to designate the existing account of a Specified Person, and any account opened with the prior permission of the Controller for a Specified Person as Specified Account, and mark clearly the words Specified Account and the territory of the Specified Person, e.g., Specified Account - Israel.

NON-APPLICATION

4. This ECM Notice shall not apply to activities related to the United Nations Protection Force, the Conference on Yugoslavia or the European Community Monitor Mission.


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