TaxTMI 
TaxTMI 
borrowing by overseas branch of an Indian Co. - whether allowed
14 Jul 2010 
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Overseas branch borrowing restrictions: generally prohibited from foreign persons but allowed from Indian-bank branches and for approved project/export finance.
Borrowing by an overseas branch of an Indian company is regulated by the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000; generally an overseas branch cannot borrow from a foreign bank or other person abroad, but may borrow from an overseas branch of an Indian bank. A branch outside India may borrow from a bank outside India for execution of turnkey or civil construction contracts or for exports on deferred payment terms, provided it complies with the terms and conditions of the authority that granted approval under the Foreign Exchange Management (Export of goods and services) Regulations, 2000. (AI Summary)
Borrowing by an overseas branch of an Indian company is regulated by the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000; generally an overseas branch cannot borrow from a foreign bank or other person abroad, but may borrow from an overseas branch of an Indian bank. A branch outside India may borrow from a bank outside India for execution of turnkey or civil construction contracts or for exports on deferred payment terms, provided it complies with the terms and conditions of the authority that granted approval under the Foreign Exchange Management (Export of goods and services) Regulations, 2000. (AI Summary)
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 >??