Derecognition of Overseas Corporate Bodies restricts fresh investments and prohibits renewal of cross border loans, with limited hedging allowed. OCBs have been derecognised and general permissions withdrawn; OCBs defined by at least sixty percent NRI ownership are subject to transitional rules. Those availing facilities before derecognition are barred from fresh investments except where incorporated OCBs not under adverse notice may be treated as foreign entities with prior Government or RBI approval. Existing holdings may be retained and unwound under specified repatriation and reporting requirements; transfers and fresh issues are restricted, deposits and accounts follow conversion or maturity rules, borrowing/lending with residents is prohibited, and limited hedging of existing exposures is permitted.
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.
Derecognition of Overseas Corporate Bodies restricts fresh investments and prohibits renewal of cross border loans, with limited hedging allowed.
OCBs have been derecognised and general permissions withdrawn; OCBs defined by at least sixty percent NRI ownership are subject to transitional rules. Those availing facilities before derecognition are barred from fresh investments except where incorporated OCBs not under adverse notice may be treated as foreign entities with prior Government or RBI approval. Existing holdings may be retained and unwound under specified repatriation and reporting requirements; transfers and fresh issues are restricted, deposits and accounts follow conversion or maturity rules, borrowing/lending with residents is prohibited, and limited hedging of existing exposures is permitted.
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