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International Marketing

Notes pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the
instrument. A promise or order to pay is not “conditional” within the meaning of this section
and section 4, by reason of the time for payment of the amount or any instalment thereof being
expressed to be on the lapse of a certain period after the occurrence of a specified event which,
according to the ordinary expectation of mankind, is certain to happen, although the time of its
happening may be uncertain. The sum includes future interest or is payable at an indicated rate
of exchange, or is according to the course of exchange, and although the instrument provides
that, on default of payment of an instalment, the balance unpaid shall become due. The person
to whom it is clear that the direction is given or that payment is to be made may be “certain
person”, within the meaning of this section and section 4, although he is misnamed or unless the
acceptor states on the face of the bill that he subscribes for a disclosed principal. The usual mode
of accepting a bill of exchange is for the drawee to write, “accepted”, across the face of the bill
and then to sign his or its name underneath. Under section 6 of the said Act, a cheque is a bill of
exchange drawn on a specified banker and not expressed to be payable otherwise than on
demand. A traveller’s cheque is a bill of exchange drawn by the issuing bank upon itself,
accepted by the act of issuance, and the right to countermand applied to ordinary cheques does
not exist as to it. It has the characteristics of a cashier’s cheque of the issuing bank. Letter of credit
is an open or sealed letter, from a merchant in one place, directed to another, in another place or
country, requiring him, if a person therein named, or the bearer of the letter, shall have occasion
to buy commodities, or to want money to any particular or unlimited amount, either or procure
the same or to pass his promise, bill, or bond for it, the writer of the letter undertaking to
provide him by exchange, or to given him such satisfaction as he shall require either for himself,
or the bearer of the letter.

Task Prepare a short report on Indian Legal Environment.

The Foreign Exchange Regulation Act, 1947, was originally enacted as a temporary measure; Act
39 of 1957 placed it permanently on the Statute Book. There have been several amendments to
the Act since then. In the light of experience gained during the last several years, the Directorate
of Enforcement and the RBI have suggested and the government has agreed on the need for
regulating, among other matters, the entry of foreign capital in the form of branches and concerns
with substantial non-resident interest in them, the employment of foreigners in India, etc. In
view of the major changes introduced in the Indian economy and liberalisation of industrial and
trade policies, consistent with the fast-changing international economic and trade relations, it
has become necessary to create a better and more conducive climate for increased inflow of
foreign investment and capital in the country to accelerate industrial growth, promotion of
trade, especially exports. When this was enacted, certain special restrictions were introduced in
regard to foreign investments and activities of individuals and concerns in India having non-
resident interest. While it is necessary to continue to regulate the activities of foreign companies
or branches of such companies and foreign citizens in India, the special restrictions need to be
removed in respect of companies registered in India, and the regulations in regard to foreign
investment need to be simplified to attract better flow of foreign capital and investment.
Accordingly, it has become necessary to remove unnecessary restrictions and also simplify the
procedure.
In 1973, Act of 1947 was repealed by Foreign Exchange Regulation Act, 1973, which has now been
repealed and replaced by Foreign Exchange Management Act, 1999, and the Appellate Board
constituted under section 52(1) of the said Act shall stand dissolved.
Subject to the provisions of sub-section (3), all offences committed under the repealed Act shall
continue to be governed by the provisions of the repealed Act as if that Act had not been
repealed.

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