Creation of charge on domestic or overseas assets enables security for cross border JV and subsidiary financing subject to RBI conditions. An Indian party may create charge on its domestic assets, including group company assets and promoters' assets, in favour of an overseas lender as security for fund based or non fund based facilities for its JV/WOS/SDS abroad, provided the facility is reckoned as the Indian party's financial commitment within Reserve Bank limits, the overseas lender is a regulated bank, a No Objection is obtained from any domestic lender holding an existing charge, and additional Reserve Bank conditions are observed. Similarly, charges on overseas JV/WOS/SDS assets may be created in favour of an AD bank in India subject to analogous conditions and applicable prudential norms.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Creation of charge on domestic or overseas assets enables security for cross border JV and subsidiary financing subject to RBI conditions.
An Indian party may create charge on its domestic assets, including group company assets and promoters' assets, in favour of an overseas lender as security for fund based or non fund based facilities for its JV/WOS/SDS abroad, provided the facility is reckoned as the Indian party's financial commitment within Reserve Bank limits, the overseas lender is a regulated bank, a No Objection is obtained from any domestic lender holding an existing charge, and additional Reserve Bank conditions are observed. Similarly, charges on overseas JV/WOS/SDS assets may be created in favour of an AD bank in India subject to analogous conditions and applicable prudential norms.
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