Pledge of overseas equity permits creation of security for facilities subject to financial commitment limits and compliance. An Indian entity making ODI in equity may pledge that equity or create charges on prescribed assets-domestic assets (including group/associate/promoter/director assets) or overseas assets of the foreign investee or step down subsidiary-in favour of an AD bank, a public financial institution, an overseas lender, or a SEBI registered debenture trustee to secure fund based or non fund based facilities for itself or for foreign investees. The value reckoned towards the financial commitment limit is the lesser of the pledge/charge value or facility amount, subject to jurisdictional and statutory compliance and exclusions for certain negative pledges and bid bonds.
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.
Pledge of overseas equity permits creation of security for facilities subject to financial commitment limits and compliance.
An Indian entity making ODI in equity may pledge that equity or create charges on prescribed assets-domestic assets (including group/associate/promoter/director assets) or overseas assets of the foreign investee or step down subsidiary-in favour of an AD bank, a public financial institution, an overseas lender, or a SEBI registered debenture trustee to secure fund based or non fund based facilities for itself or for foreign investees. The value reckoned towards the financial commitment limit is the lesser of the pledge/charge value or facility amount, subject to jurisdictional and statutory compliance and exclusions for certain negative pledges and bid bonds.
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