Restriction on guarantees for overseas borrowings prevents channeling foreign-raised funds into India without regulatory permission. Indian companies and their Authorised Dealer Category - I banks are prohibited from issuing direct or indirect guarantees, creating contingent liabilities, or offering security for borrowings raised abroad by overseas holding, associate, subsidiary or group companies except as explicitly permitted; funds so raised cannot be used in India unless they conform to general or specific permissions under the relevant regulations, and contravening structures attract penal consequences.
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.
Restriction on guarantees for overseas borrowings prevents channeling foreign-raised funds into India without regulatory permission.
Indian companies and their Authorised Dealer Category - I banks are prohibited from issuing direct or indirect guarantees, creating contingent liabilities, or offering security for borrowings raised abroad by overseas holding, associate, subsidiary or group companies except as explicitly permitted; funds so raised cannot be used in India unless they conform to general or specific permissions under the relevant regulations, and contravening structures attract penal consequences.
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