Guarantee permission: authorised dealer banks may allow residents to issue guarantees securing external commercial borrowings under FEMA. An amendment inserts a provision in Regulation 5 permitting an authorised dealer bank, subject to central bank directions, to permit a resident or on behalf of a resident to issue a guarantee in favour of an overseas lender or security trustee to secure an external commercial borrowing; the insertion is deemed effective from 11 July 2008 and is certified not to adversely affect any person despite retrospective effect.
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.
Guarantee permission: authorised dealer banks may allow residents to issue guarantees securing external commercial borrowings under FEMA.
An amendment inserts a provision in Regulation 5 permitting an authorised dealer bank, subject to central bank directions, to permit a resident or on behalf of a resident to issue a guarantee in favour of an overseas lender or security trustee to secure an external commercial borrowing; the insertion is deemed effective from 11 July 2008 and is certified not to adversely affect any person despite retrospective effect.
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