Overseas direct investment: share swaps and pledges to regulated foreign lenders permitted, subject to valuation, limits, and reporting. Share for share swaps via depositary receipt mechanisms are now an accepted mode of overseas direct investment and are subsumed under the prescribed overseas investment limit, subject to valuation norms and reporting to the Reserve Bank. Indian parties may pledge shares held in overseas joint ventures or wholly owned subsidiaries to overseas lenders regulated as banks to secure fund based or non fund based facilities, provided total financial commitments remain within the Reserve Bank's stipulated overseas investment limit.
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: share swaps and pledges to regulated foreign lenders permitted, subject to valuation, limits, and reporting.
Share for share swaps via depositary receipt mechanisms are now an accepted mode of overseas direct investment and are subsumed under the prescribed overseas investment limit, subject to valuation norms and reporting to the Reserve Bank. Indian parties may pledge shares held in overseas joint ventures or wholly owned subsidiaries to overseas lenders regulated as banks to secure fund based or non fund based facilities, provided total financial commitments remain within the Reserve Bank's stipulated overseas investment limit.
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