Guarantees which may be given by an Authorised Dealer

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....terms in accordance with the approval granted by the Reserve Bank for import on such terms. ^2[(1A) An Authorised Dealer may give guarantee, Letter of Undertaking or Letter of Comfort in respect of any debt, obligation or other liability incurred by a person resident in India and owed to a person resident outside India (being an overseas supplier of goods, bank or a financial institution), for import of goods, as permitted under the Foreign Trade Policy announced by the Government of India from time to time and subject to such terms and conditions as may be specified by Reserve Bank from time to time.] ^4[(1B) - A authorised dealer in India may give guarantee or standby Letter of Credit in respect of an obligation incurred by a person....

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.... (b) the guarantee shall be valid for a tenure co-terminus with the offer period as required under the SEBI (SAST) Regulations. ] (3) An authorised dealer may, in the ordinary course of his business, give a guarantee in the following other cases, namely: (i) on behalf of his customer or branch or correspondent outside India in respect of missing or defective documents, or authenticity of signatures; (ii) in favour of organizations outside India issuing travellers cheques stocked for sale in India by the authorised dealer or by his constituents who are authorised persons. ^1[(iii) in favour of foreign airlines/International Air Transport Association (IATA), on behalf of IATA approved travel agents.] ....