Treatment of performance guarantees now counts partial exposure and requires prior approval where invocation breaches exposure limits. Regulatory amendments treat fifty per cent of performance guarantees issued by an Indian party for its overseas JV/WOS as part of overseas financial commitments and require prior Reserve Bank approval if invocation would breach exposure ceilings; bank guarantees issued by resident banks on behalf of overseas JV/WOS and backed by counter-guarantee/collateral of the Indian party are fully included. The Regulations permit loans, corporate guarantees for first-generation step-down companies, personal guarantees by indirect resident promoters within limits, CCPS to be treated as equity, and allow listed Indian parties to write off up to twenty-five per cent of equity/receivables subject to documentation and reporting, with creation of charges on assets permitted with prior approval.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Treatment of performance guarantees now counts partial exposure and requires prior approval where invocation breaches exposure limits.
Regulatory amendments treat fifty per cent of performance guarantees issued by an Indian party for its overseas JV/WOS as part of overseas financial commitments and require prior Reserve Bank approval if invocation would breach exposure ceilings; bank guarantees issued by resident banks on behalf of overseas JV/WOS and backed by counter-guarantee/collateral of the Indian party are fully included. The Regulations permit loans, corporate guarantees for first-generation step-down companies, personal guarantees by indirect resident promoters within limits, CCPS to be treated as equity, and allow listed Indian parties to write off up to twenty-five per cent of equity/receivables subject to documentation and reporting, with creation of charges on assets permitted with prior approval.
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