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<h1>RBI Amends Foreign Exchange Management Regulations: Indian Firms Can Guarantee Overseas JVs and Subsidiaries Effective May 2011</h1> The Reserve Bank of India issued amendments to the Foreign Exchange Management (Guarantees) Regulations, 2000, effective from May 27, 2011. These amendments allow an Indian Party establishing a Joint Venture (JV) or Wholly Owned Subsidiary (WOS) abroad to provide guarantees for the business of these entities. The provisions also extend to guarantees for first-generation step-down operating companies, provided compliance with the Foreign Exchange Management (Transfer and Issue of Foreign Security) (Amendment) Regulations, 2004 is maintained. The amendments are not expected to adversely affect any person due to their retrospective application.