Charge on foreign and domestic assets permitted as security, subject to reserve bank investment limits and lender regulation. Indian parties may create pledge or other charges on shares of overseas JV, WOS or SDS and on domestic or foreign assets (including group or related parties' assets) as security for fund based or non fund based facilities for themselves or their overseas affiliates. Such facilities are to be reckoned as the Indian party's financial commitment and must remain within the Reserve Bank's overseas investment limits; overseas lenders must be bank regulated; existing chargees must provide 'No Objection' where applicable; and transactions are subject to additional Reserve Bank conditions and applicable prudential norms.
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.
Charge on foreign and domestic assets permitted as security, subject to reserve bank investment limits and lender regulation.
Indian parties may create pledge or other charges on shares of overseas JV, WOS or SDS and on domestic or foreign assets (including group or related parties' assets) as security for fund based or non fund based facilities for themselves or their overseas affiliates. Such facilities are to be reckoned as the Indian party's financial commitment and must remain within the Reserve Bank's overseas investment limits; overseas lenders must be bank regulated; existing chargees must provide 'No Objection' where applicable; and transactions are subject to additional Reserve Bank conditions and applicable prudential norms.
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