Restructuring of overseas investment: permitted if diminution in dues does not exceed proportionate accumulated losses and is duly certified. Rule 18 permits restructuring of a foreign investee's balance sheet when the investee has incurred losses in the prior two years, provided post-restructuring diminution in outstanding dues to the Indian investor does not exceed the investor's proportionate accumulated losses computed on aggregate equity and debt (or equity only if restructuring involves only equity). Significant diminution must be certified on an arm's length basis by an authorised valuer or certified public accountant, the certificate must state accumulated losses, proportionate share, and confirm diminution does not exceed proportionate losses, be dated within six months, and be submitted to the designated Authorised Dealer bank.
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Provisions expressly mentioned in the judgment/order text.
Restructuring of overseas investment: permitted if diminution in dues does not exceed proportionate accumulated losses and is duly certified.
Rule 18 permits restructuring of a foreign investee's balance sheet when the investee has incurred losses in the prior two years, provided post-restructuring diminution in outstanding dues to the Indian investor does not exceed the investor's proportionate accumulated losses computed on aggregate equity and debt (or equity only if restructuring involves only equity). Significant diminution must be certified on an arm's length basis by an authorised valuer or certified public accountant, the certificate must state accumulated losses, proportionate share, and confirm diminution does not exceed proportionate losses, be dated within six months, and be submitted to the designated Authorised Dealer bank.
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