TaxTMI 
TaxTMI 
Terms and conditions for opening of Escrow Account
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....rough banking channels (ii) by way of a guarantee issued by an authorised dealer bank subject to terms and conditions as specified in the Foreign Exchange Management (Guarantee) Regulations 2000, as amended from time to time. (b) Permitted debits in the Escrow account are: (i) As per SEBI (SAST) Regulations or any other regulations issued by the Security Exchange Board of India (SEBI). (c) The resident mandatee empowered by the overseas acquirer for this purpose, may operate the Escrow account in accordance with SEBI (SAST) Regulations or any other regulations issued by the SEBI. (d) The Escrow account shall be closed immediately after completing the requirements as outlined above. 2. By resid....
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....ompletion 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. (e) Notwithstanding what has been stated in paragraph d. above, in case of transfer of capital instruments between a resident buyer and a non-resident seller or vice-versa, if so agreed between the buyer and the seller, an escrow arrangement may be made between the buyer and the seller for an amount not more than twenty five per cent of the total consideration for a period not exceeding eighteen months from the date of the transfer agreement. 3. Acquisition/ transfer shall be in accordance with the provisions ....
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....8-RB dated 09-11-2018 before it was read as "SCHEDULE 5 (See Regulation 5(5)) Terms and conditions for opening of Escrow Account An Escrow account in INR can be opened jointly and severally with an Authorised Dealer in India as an Escrow Agent in the following cases subject to the terms and conditions specified in this schedule. 1. By non-resident corporates for acquisition/ transfer of shares/ convertible debentures through open offers/ delisting/exit offers. (a) Permitted Credits in the Escrow account are: (i) Foreign Inward remittance through banking channels (b) Permitted debits in the Escrow acco....
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....;The Escrow account shall remain operational for a maximum period of six months only and the account shall be closed immediately after completing the requirements as outlined 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. (e) Notwithstanding what has been stated in paragraph (d) above, in case of transfer of shares between a resident buyer and a non-resident seller or vice- versa, if so agreed between the buyer and the seller, an escrow arrangement may be made between t he buyer and the seller for an amount not more than twenty five per....