Bank guarantee for non resident acquisitions allowed subject to SEBI compliance and counter guarantee, with reporting on invocation. Permits AD Category I banks to issue bank guarantees for non resident acquisitions of shares or convertible debentures via open offers, delisting or exit offers without prior RBI approval, provided the transaction complies with SEBI (SAST) Regulations and the issuing bank obtains a counter guarantee from a bank of international repute; guarantees must be co terminus with the offer period and, if invoked, the issuing bank must report circumstances to the Reserve Bank's Foreign Exchange Department.
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Provisions expressly mentioned in the judgment/order text.
Bank guarantee for non resident acquisitions allowed subject to SEBI compliance and counter guarantee, with reporting on invocation.
Permits AD Category I banks to issue bank guarantees for non resident acquisitions of shares or convertible debentures via open offers, delisting or exit offers without prior RBI approval, provided the transaction complies with SEBI (SAST) Regulations and the issuing bank obtains a counter guarantee from a bank of international repute; guarantees must be co terminus with the offer period and, if invoked, the issuing bank must report circumstances to the Reserve Bank's Foreign Exchange Department.
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