Non-resident guarantee for non-fund based facilities allowed to support resident-to-resident undertakings, enabling hedging via group guarantees. Non-resident guarantees may support non-fund based facilities between residents under the general permission route, allowing resident subsidiaries of multinational groups to hedge foreign currency exposure through derivative contracts with Authorised Dealer Category I banks on the strength of a non resident group guarantee; discharge of guarantor liability and repayment by the principal debtor continue to be governed by A.P. (DIR Series) Circular No. 28 of 2001, and banks must notify their constituents, with directions issued under the Foreign Exchange Management Act, 1999.
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.
Non-resident guarantee for non-fund based facilities allowed to support resident-to-resident undertakings, enabling hedging via group guarantees.
Non-resident guarantees may support non-fund based facilities between residents under the general permission route, allowing resident subsidiaries of multinational groups to hedge foreign currency exposure through derivative contracts with Authorised Dealer Category I banks on the strength of a non resident group guarantee; discharge of guarantor liability and repayment by the principal debtor continue to be governed by A.P. (DIR Series) Circular No. 28 of 2001, and banks must notify their constituents, with directions issued under the Foreign Exchange Management Act, 1999.
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