Trade credit regulation restricts cross-border supplier and buyer credit, prescribing currency, maturities and security and reporting obligations. Trade Credits are regulated as capital account transactions under FEMA and RBI Master Directions; they may be FCY or INR denominated, provided as buyers' or suppliers' credit from recognised lenders, and are subject to eligible borrower criteria, automatic route ceilings per import, prescribed maturities for capital and non capital goods, all in cost ceilings, currency conversion rules, hedging and risk management requirements, security arrangements (including guarantees and charges) compliant with FEMA and related regulations, and mandatory reporting by Authorised Dealer Category I banks.
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Provisions expressly mentioned in the judgment/order text.
Trade credit regulation restricts cross-border supplier and buyer credit, prescribing currency, maturities and security and reporting obligations.
Trade Credits are regulated as capital account transactions under FEMA and RBI Master Directions; they may be FCY or INR denominated, provided as buyers' or suppliers' credit from recognised lenders, and are subject to eligible borrower criteria, automatic route ceilings per import, prescribed maturities for capital and non capital goods, all in cost ceilings, currency conversion rules, hedging and risk management requirements, security arrangements (including guarantees and charges) compliant with FEMA and related regulations, and mandatory reporting by Authorised Dealer Category I banks.
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