Escrow account conditions for foreign direct investment: non interest escrow, limited credits/debits, compliance and repatriation rules. Escrow accounts for FDI must be maintained in INR with an AD Category I bank or SEBI authorised depository participant, be non interest bearing, and cannot secure fund or non fund facilities. Permitted credits are limited to foreign inward remittances for share issue or transfer and rupee consideration from resident acquirers; permitted debits are remittances to beneficiaries or refunds where transactions fail. The underlying FDI must comply with FEMA and, where applicable, SEBI rules; balances may be repatriated after completion subject to exchange rate risk and KYC requirements, and escrow terms must be set out in contractual documentation.
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Provisions expressly mentioned in the judgment/order text.
Escrow account conditions for foreign direct investment: non interest escrow, limited credits/debits, compliance and repatriation rules.
Escrow accounts for FDI must be maintained in INR with an AD Category I bank or SEBI authorised depository participant, be non interest bearing, and cannot secure fund or non fund facilities. Permitted credits are limited to foreign inward remittances for share issue or transfer and rupee consideration from resident acquirers; permitted debits are remittances to beneficiaries or refunds where transactions fail. The underlying FDI must comply with FEMA and, where applicable, SEBI rules; balances may be repatriated after completion subject to exchange rate risk and KYC requirements, and escrow terms must be set out in contractual documentation.
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