9911796707
TMI Blog2007 (8) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... ment Scheme. Attention of Authorised Dealer Category - 1 (AD Category -1) banks is invited to Schedule 1 to Foreign Exchange Management (Transfer or issue of Security by a Person Resident Outside India) Regulations, 2000, notified vide FEMA Notification No. 20/2000-RB dated May 3, 2000, as amended from time to time. 2. It has been decided in consultation with Government of India to allow foreign investment in infrastructure Companies in Securities Markets, namely stock exchanges, depositories and clearing corporations, in compliance with SEBI Regulations and subject to the following conditions: i) Foreign investment upto 49 per cent will be allowed in these companies with a separate Foreign Direct Investment (FDI) cap of 26 per cent and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nfrastructure Company but is a regulatory body and it cannot be allowed to function for profit. The impact of the impugned circular is putting restrictions on the trade activities of the general corporate sector which does not fall within the ambit and scope of the Reserve Bank of India. The Government of India took a policy decision and vide circular dated 22nd December, 2006, issued by Securities and Exchange Board of India, it has been decided to permit foreign investment subject to the restrictions and classifications made in that Circular. The circular reads as under:- "1. The Government of India has decided to have the following policy regarding foreign investments in infrastructure companies in the securities markets, namely stock e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions so far it provide for the regulation of the Foreign Exchange management. We are unable to find any merit in the contention raised on behalf of the petitioner that the Reserve Bank of India has no jurisdiction to issue such circulars. Section 10 (4) of the Act clearly stipulates that an authorised person shall, as contemplated under Section 10 (1) of the Act, in all his dealings is bound by the directions, general or special, issued by the Reserve Bank of India. Similarly, Section 11 (1) of the Act provides that the Reserve Bank of India may, for the purpose of securing compliance with the provisions of the Act and of any Rules, Regulations and directions made under the provisions of the Act, give to the authorised persons any direction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eserve Bank of India has already issued directions in furtherance to the policy decision taken by the Central Government. The petitioner has not challenged in the present writ petition the policy decision of the Central Government but has merely questioned the incidental act i.e. the impugned circular. In any event, these are policy decisions which fall within the domain of the authorities concerned in the Central Government. The effects and repercussions of such policy decision can hardly be subject matter of judicial review. Policy decisions, unless and until are reversed or are inconsistent with the constitutional mandate or are patently abuse of power, judicial intervention would normally be not necessitated. Reference can be made to th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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