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<h1>Foreign Entities Can Receive Financial Guarantees from Indian Companies Under Specific Conditions and Regulatory Limits</h1> Regulation 5 of the Foreign Exchange Management (Overseas Investment) Regulations, 2022 outlines permissible financial guarantees for foreign entities. Indian entities or their group companies can issue corporate, performance, or personal guarantees. Bank guarantees backed by counter-guarantees are allowed. Guarantees must not be open-ended, and invoked guarantees are considered lending. Joint guarantees are counted fully towards each entity's limits, while performance guarantees are calculated at 50% of the amount. Guarantee roll-overs are not treated as fresh commitments if the amount remains unchanged.