No objection for ECB security: AD banks may clear charges, pledges and guarantees subject to ECB compliance and conditions. AD Category - I banks may convey no objection under FEMA for creation of charges on immovable assets, pledge of financial securities, and issuance of corporate or personal guarantees to secure resident ECBs, provided the ECB complies with extant guidelines, the loan agreement includes a security clause and is signed, and the borrower holds a Loan Registration Number. Such no objection is limited to the foreign exchange angle; each security form must be co-terminus with ECB maturity and meet specified conditions on enforcement, transfer in line with FDI policy, auditor certification of end-use, and appropriate corporate or individual authorisations.
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.
No objection for ECB security: AD banks may clear charges, pledges and guarantees subject to ECB compliance and conditions.
AD Category - I banks may convey no objection under FEMA for creation of charges on immovable assets, pledge of financial securities, and issuance of corporate or personal guarantees to secure resident ECBs, provided the ECB complies with extant guidelines, the loan agreement includes a security clause and is signed, and the borrower holds a Loan Registration Number. Such no objection is limited to the foreign exchange angle; each security form must be co-terminus with ECB maturity and meet specified conditions on enforcement, transfer in line with FDI policy, auditor certification of end-use, and appropriate corporate or individual authorisations.
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