We had earlier come across instances of AD banks permitting remittance towards overseas investment without receiving the requisite returns from the investor entity. Though, it was always implicit in terms of section 10(5) of FEMA, that such oversight by AD banks makes them liable for penal action under sections 11 and 13 of FEMA, the new directions have stated it unambiguously.
New actors, new products, new markets - A new playing field 28. The foreign exchange arena, in particular, the foreign exchange market, has in  many ways been a sheltered playing field for Authorised Dealers. But this is changing and changing fast. As an Authorised Dealer, till recently, you had to deal in a small suite of products. Simple. Easy to understand.