Creditor may obtain guarantees but must ensure cross-border underlying transactions are not prohibited under foreign exchange law. A person resident in India being a creditor may arrange or obtain a guarantee in its favour, subject to the condition that where the principal debtor and ... Summary
Creditor may obtain guarantees but must ensure cross-border underlying transactions are not prohibited under foreign exchange law.
A person resident in India being a creditor may arrange or obtain a guarantee in its favour, subject to the condition that where the principal debtor and surety both are persons resident outside India, the creditor shall ensure that the underlying transaction is not prohibited under the Act, or rules or regulations or directions issued under the Act.
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