borrowing by overseas branch of an Indian Co. - whether allowed

[Sanjeev Sharma]

Please guide me on whether an overseas branch of an indian company borrow funds from either overseas branch of an indian bank or from a foreign bank outside India or from any other person abroad ?? Any approvals required >??

AI Summary

Indian Companies Abroad: Borrowing Rules Under FEMA 2000 Explained; Overseas Branches Face Restrictions on Foreign Loans An individual inquired about the permissibility of an overseas branch of an Indian company borrowing funds from various sources abroad, including foreign banks and other entities. Responses indicated that under the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000, such branches cannot borrow from foreign banks or other persons abroad but can borrow from overseas branches of Indian banks. Additionally, borrowing is allowed from foreign banks for specific projects or contracts outside India, provided it aligns with the terms set by the approving authority under the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000.