Issue of Bank Guarantee on behalf of person resident outside India for FDI transactions

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....AD Category - I) banks is invited to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000, notified vide Notification No. FEMA. 20/2000-RB dated May 3, 2000, as amended from time to time, read with Regulation 5(2A) of the Foreign Exchange Management (Deposit) Regulations notified vide Notification No. FEMA. 5/2000-RB dated May 3, 2000....

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.... allowed to give guarantees for specified purposes as stated therein. 2. In order to provide operational flexibility and ease the procedures, it has been decided to permit AD Category -I bank to issue bank guarantee, without prior approval of the Reserve Bank, on behalf of a non-resident acquiring shares or convertible debentures of an Indian company through open offers/ delisting/exit offers, pr....