Charge on overseas shares permitted under automatic route, subject to compliance and prior central bank approval on invocation. Creation of a charge on shares of an overseas joint venture, wholly owned subsidiary or step down subsidiary by an Indian investor is permitted under the automatic route subject to regulatory financial commitment compliance and other notification requirements. Overseas assets charged must not be securitised; charge periods should align with end use; loans from domestic lenders must fund core overseas activities and not investments back into India; an auditor's certificate confirming non utilisation for India must be retained; and invocation leading to domestic acquisition of overseas assets requires prior central bank approval.
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.
Charge on overseas shares permitted under automatic route, subject to compliance and prior central bank approval on invocation.
Creation of a charge on shares of an overseas joint venture, wholly owned subsidiary or step down subsidiary by an Indian investor is permitted under the automatic route subject to regulatory financial commitment compliance and other notification requirements. Overseas assets charged must not be securitised; charge periods should align with end use; loans from domestic lenders must fund core overseas activities and not investments back into India; an auditor's certificate confirming non utilisation for India must be retained; and invocation leading to domestic acquisition of overseas assets requires prior central bank approval.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
