External Commercial Borrowings Policy - Liberalisation - Issue of Guarantee for operating lease

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....P. (DIR Series) Circular No.62 April 20, 2009  To All Category-I Authorised Dealer Banks Madam / Sir, External Commercial Borrowings Policy - Liberalisation Issue of Guarantee for operating lease Attention of Authorized Dealer Category - I (AD Category -I) banks is invited to A. P. (DIR Series) Circular No. 24 dated March 1, 2002, in terms of which AD Category - I banks....

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....f rationalization, it has been decided to allow AD Category - I banks to convey 'no objection' from the Foreign Exchange Management Act (FEMA), 1999 angle for issue of corporate guarantee in favour of the overseas lessee, for operating lease in respect of import of aircraft / aircraft engine / helicopter. 3. The 'no objection' to the Indian importer for issue of corporate guaran....

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....icant should take the approval of the authority concerned before undertaking the transaction.  Further, the 'no objection' should not be construed as regularizing or validating any irregularities, contravention or other lapses, if any, under the provisions of FEMA or any other laws or regulations. 5. This shall come into force with immediate effect and will be subject to review fro....