Resident Indians may act as surety or principal debtor subject to transaction legality and mutual borrowing-eligibility conditions. Permission to act as a surety or a principal debtor is granted to persons resident in India only where the underlying transaction is not prohibited under the Act and where the surety and principal debtor are eligible to lend to and borrow from each other under the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018, subject to exceptions for authorised dealer bank guarantees with counter-guarantee or full collateral, agents of foreign carriers for statutory liabilities, and resident-to-resident guarantees.
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.
Resident Indians may act as surety or principal debtor subject to transaction legality and mutual borrowing-eligibility conditions.
Permission to act as a surety or a principal debtor is granted to persons resident in India only where the underlying transaction is not prohibited under the Act and where the surety and principal debtor are eligible to lend to and borrow from each other under the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018, subject to exceptions for authorised dealer bank guarantees with counter-guarantee or full collateral, agents of foreign carriers for statutory liabilities, and resident-to-resident guarantees.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
