Overseas direct investment liberalisation: expanded recognition of charges, bank guarantees, guarantees, and CCPS treatment. Indian parties may seek RBI approval to create charges (pledge, mortgage, hypothecation) on their immovable, movable and other financial assets to secure overseas JV/WOS obligations within the overall financial commitment limit, subject to no-objection from Indian lenders and forthcoming reporting requirements; bank guarantees backed by counter-guarantee or collateral and personal guarantees by indirect resident promoters are to be reckoned or permitted respectively, CCPS are to be treated as equity, and financial commitment without equity may be considered under approval route with host-country compliance.
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.
Overseas direct investment liberalisation: expanded recognition of charges, bank guarantees, guarantees, and CCPS treatment.
Indian parties may seek RBI approval to create charges (pledge, mortgage, hypothecation) on their immovable, movable and other financial assets to secure overseas JV/WOS obligations within the overall financial commitment limit, subject to no-objection from Indian lenders and forthcoming reporting requirements; bank guarantees backed by counter-guarantee or collateral and personal guarantees by indirect resident promoters are to be reckoned or permitted respectively, CCPS are to be treated as equity, and financial commitment without equity may be considered under approval route with host-country compliance.
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