Security for external commercial borrowings: expanded permissible charges on assets and guarantees to secure ECBs subject to conditions AD Category I banks may permit creation of charge on immovable assets, movable assets, financial securities and issuance of corporate and personal guarantees in favour of overseas lenders/security trustees to secure ECBs, provided the ECB complies with extant guidelines, the loan agreement contains a security clause mandating such charge, and necessary no objection certificates from existing Indian lenders are obtained; specific regulatory conditions apply to immovable properties, movable assets, financial securities transfers and guarantee formalities, and these measures are subject to FEMA regulations and immediate effect.
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.
Security for external commercial borrowings: expanded permissible charges on assets and guarantees to secure ECBs subject to conditions
AD Category I banks may permit creation of charge on immovable assets, movable assets, financial securities and issuance of corporate and personal guarantees in favour of overseas lenders/security trustees to secure ECBs, provided the ECB complies with extant guidelines, the loan agreement contains a security clause mandating such charge, and necessary no objection certificates from existing Indian lenders are obtained; specific regulatory conditions apply to immovable properties, movable assets, financial securities transfers and guarantee formalities, and these measures are subject to FEMA regulations and immediate effect.
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