2nd Floor, Om Apartments, Pune
+91 - 9595 271 145 / +91 - 9284 293 227 info@csladda.com

Note on Obtaining FFMC Authorized Dealer (AD) Category – II License

Sub.: Note on Obtaining FFMC Authorized Dealer (AD) Category – II License
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Pramodkumar R. Ladda
Company Secretary
Tel: +91-20-24570055 | Office Cell : +91- 9404923393, 8624919609, 9175395604 |
Personal Mob. : +91- 9922735476, 9595271145 | Skype id: pramodladda
Ladda Bhutada & Associates : 2nd Floor, OM Apartment, SR No. 496/B, KCC Classes Lane,
Opp. R. M. Kabara Electricals & Rale Estate, Kasba Peth, Pune – 411011 Maharashtra, India.
laddacs@gmail.com | http;//www.csladda.com
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Dear Sir,

In respect of above captioned subject and with reference to our telephonic communication, please find note in detail for making application for Full-fledged Money Changers (FFMCs) Authorized Dealer (AD) Category II:-

I) Introduction:

The Reserve Bank grants licenses to certain entities to undertake more transactions, in addition to what Full Fledged Money Changers (FFMCs) are currently permitted, by authorizing them to undertake release / remittance of foreign exchange for certain non-trade related current account transactions for the purpose of widening the scope of activities which the Authorized Persons are currently eligible to undertake and also to increase the number of entities that are eligible to sell foreign exchange to public for their day-to-day current account transactions. Such entities are called as Authorized Dealers – Category II (ADs – Category II).

II) Permitted Transactions:

ADs-Category II will be permitted to release / remit foreign exchange for the following
transactions:
(a) Private Visits,
(b) Remittance by tour operators / travel agents to overseas agents / principals / hotels,
(c) Business Travel,
(d) Fee for participation in global conferences and specialized training,
(e) Remittance for participation in international events / competitions (towards training,
sponsorship and prize money).
(f) Film shooting,
(g) Medical Treatment abroad,
(h) Disbursement of crew wages,
(i) Overseas Education,
(j) Remittance under educational tie up arrangements with universities abroad,
(k) Remittance towards fees for examinations held in India and abroad and additional
score sheets for GRE, TOEFL etc.,
(l) Employment and processing, assessment fees for overseas job applications,
(m) Emigration and Emigration Consultancy Fees,
(n) Skills / credential assessment fees for intending migrants,
(o) Visa fees,
(p) Processing fees for registration of documents as required by the Portuguese / other
Governments,
(q) Registration / Subscription / Membership fees to International Organizations.

ADs – Category II may also be permitted to undertake additional activities as decided by the
Reserve Bank, on case by case basis.

III) Eligibility Criteria for grant of ADs – Category II:

The eligibility criteria depend on strong financials, good governance, regulatory / prudential comfort and adequate internal control mechanism. Existing FFMCs are considered eligible for ADs – Category II.

The criteria for upgradation of existing FFMCs to AD-Category II include below:-
1. Minimum Net Owned Funds of Rs. 10 Crores;
2. Satisfactory functioning as FFMC for at least two (2) years; and
3. Satisfactory Credit Report from their Bankers.

III) Documents required for applying for ADs – Category II:

1. Copy of latest audited financials with a certificate from Statutory Auditors regarding position of Net Owned Funds as on the date of application;
2. Confidential Report from applicant‘s banker;
3. Declaration to the effect that no proceedings have been initiated or pending with DoE/ DRI;
4. Copy of KYC / AML / CFT Policy framework existing in the Company. If there is no change in the policy framework since its submission of last policy framework to Reserve Bank of India (RBI), then only a declaration to be submitted to that effect. However, in case there is a change, the revised/latest policy shall be required to be submitted;
5. Brief write-up on the internal control systems, including internal and external audit. If there is no change in the internal control systems since its submission of the last write-up to RBI, then only a declaration to be submitted to that effect. However, in case there is a change, the revised/latest write-up shall be required to be submitted.

IV) Place of rendering Services:

The place of rendering services generally shall be our office situated at Office 302, Om Apartment, Near KCC Classes, Kasba Peth, Near Pune – 411 011.

We assure for best services from our side for your satisfaction.

Thanking you and wishing long term relationship with your reputed Company.

I remain,

Sd/-
Pramodkumar Ladda
Company Secretary

I / We accept the above terms and conditions and authorize you to submit documents relating to obtaining FFMC ADs Category – II License of the Company with the RBI authorities on our behalf and also pay requisite filing and other fees and charges on our behalf.

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Pramodkumar R. Ladda
Company Secretary
Tel: +91-20-24570055 | Office Cell : +91- 9404923393, 8624919609, 9175395604 |
Personal Mob. : +91- 9922735476, 9595271145 | Skype id: pramodladda
Ladda Bhutada & Associates : 2nd Floor, OM Apartment, SR No. 496/B, KCC Classes Lane,
Opp. R. M. Kabara Electricals & Rale Estate, Kasba Peth, Pune – 411011 Maharashtra, India.
laddacs@gmail.com | http;//www.csladda.com
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