Arm's length lending: Indian entities may lend to foreign issuers if loans are documented and interest is arm's length. An Indian entity may lend to or invest in debt instruments of a foreign entity only where the loan is backed by a duly executed loan agreement and the ... Summary
Arm's length lending: Indian entities may lend to foreign issuers if loans are documented and interest is arm's length.
An Indian entity may lend to or invest in debt instruments of a foreign entity only where the loan is backed by a duly executed loan agreement and the rate of interest is charged on an arm's length basis, meaning the transaction is conducted as if between unrelated parties to avoid conflicts of interest.
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