Creditor Guarantees: Indian resident creditors may obtain guarantees, subject to verification that offshore underlying transactions are not prohibited. A person resident in India acting as a creditor may arrange or obtain a guarantee in its favour. If both the principal debtor and surety are persons ... Summary
Creditor Guarantees: Indian resident creditors may obtain guarantees, subject to verification that offshore underlying transactions are not prohibited.
A person resident in India acting as a creditor may arrange or obtain a guarantee in its favour. If both the principal debtor and surety are persons resident outside India, the creditor must ensure that the underlying transaction is not prohibited under the Foreign Exchange Management Act or under rules, regulations or directions issued under it.
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