On the basis of Ministry of Finance’s instructions issued on 31st January, 1989 relating to Indian Agents of foreign suppliers for all the Ministries & Departments under the Government of India, supplementary instructions were issued by the Ministry of Defence in April 1989 and in November, 2001 to regulate authorized Indian representatives & agents of foreign suppliers. The instructions provide for the regulation of representational arrangements through a system of registration, categorical and open declaration by the foreign suppliers of the services to be rendered by their authorized representatives & agents and the remuneration payable to them by way of fees, commission or any other method. So far no authorized Indian representatives /& agent has been registered by the Ministry of Defence in terms of these instructions.

Defence Procurement Procedure (DPP) 2006 and Defence Procurement Manual (DPM 2006) under implementation with effect from 1st September 2006 provide for direct dealing with Original Equipment Manufacturers (OEMs) or Authorised Vendors or Government sponsored Export Agencies (applicable in case of countries where domestic laws do not permit direct export by OEMs). Further, the procedures inter-alia incorporate provisions for penalties being imposed if any seller engages any individual or firm, whether Indian or foreign whatsoever, to intercede, facilitate or in any way recommend to the Government of India or any of its functionaries, whether officially or unofficially, to the award of the contract to the seller.