Regulation 5(2B) - Terms and conditions for opening of Escrow Account

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....ined only with an AD Category-I bank in India as Escrow agent. The Escrow account may be opened jointly and severally. Further, securities kept/linked with such Escrow accounts may be linked with demat account maintained with SEBI authorised Depository Participants as Escrow agents. 2. The account shall be non-interest bearing. 3. No fund or non-fund based facilities would be permitted again....

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....row account was opened. 6. The underlying FDI transaction for which the Escrow account is opened should be compliant with extant FEMA provisions. Further, for the purposes of FDI reporting, date of transfer of funds into the bank account of the issuer or transferor of shares, shall be the relevant date of remittance. 7. Where the transaction is governed by SEBI guidelines/regulations, o....

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....d above or on completion of six months from the date of opening of such account, whichever is earlier. In case the Escrow account is required to be maintained beyond six months, specific permission from the Reserve Bank has to be sought. 10. Requirement of compliance with KYC guidelines issued by the Reserve Bank/SEBI shall rest with the AD Category-I bank/SEBI authorised Depository Participant....