TaxTMI 
TaxTMI 
Foreign Exchange Management (Guarantees) Regulations, 2026.
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.... regulations namely: 1. Short title and Commencement.- (1) These regulations may be called the Foreign Exchange Management (Guarantees) Regulations, 2026. (2) They shall come into force from the date of their publication in the Official Gazette. 2. Definitions.- (1) In these regulations, unless the context otherwise requires,- (a) "Act" means the Foreign Exchange Management Act, 1999 (42 of 1999); (b) "Authorised dealer" means a person authorised as an authorised dealer under sub-section (1) of section 10 of the Act; (c) "Creditor" means a person to whom the guarantee is given; (d) "Guarantee" including a "counter-guarantee" means a contract, by whatever name called, to perform the....
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....ed dealer in its capacity of a custodian bank, where the principal debtor is a registered Foreign Portfolio Investor and the creditor is an authorised central counterparty in India. c. a guarantee given in accordance with the Foreign Exchange Management (Overseas Investment) Regulations, 2022. 5. Permission to act as a surety or a principal debtor.- A person resident in India may act as a surety or a principal debtor for a guarantee, subject to conditions that - (a) the underlying transaction for which the guarantee is being given or arranged is not prohibited under the Act or rules or regulations or directions issued under the Act; and (b) the surety and the principal debtor are eligible to lend to and borrow ....
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....re persons resident outside India or where the creditor has arranged the guarantee. (2) The person having the obligation to report the guarantee shall report, (a) issuance of guarantee, (b) any subsequent change in guarantee terms, namely - guarantee amount, extension of period or pre-closure, and (c) invocation of guarantee, if any, in the format provided at Annex to these regulations. (3) Reporting, as provided in sub-regulations (1) and (2), shall be made to an authorised dealer bank on a quarterly basis within fifteen calendar days from the end of the respective quarter for onward submission to the Reserve Bank of India. (4) An authorised dealer bank shall submit the returns received under this regulation to the Reserve Bank of....
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....e Surety i. Name * ii. PAN iii. LEI iv. CIN v. Residential status * resident /non-resident vi. Relationship between surety and the principal debtor * a. Parent of the principal debtor b. Group entity of the principal debtor c. Surety not related and a bank. d. Surety is not related and is any other financial institution e. Others. (please specify)_______ vii. Major activity * NIC code: 6. Details of the Principal debtor i. Name * &n....
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....nter guarantee or collateral deposit taken, if any. Name of the counter guarantor/ depositor: Residential status: Resident/ Non-resident Currency of guarantee/ deposit: Amount of guarantee/ deposit: Part C: Details of modification/pre-closure (One Part C per guarantee modified) 9. Previously reported guarantee transaction number * 10. Whether amount changed? If yes, provide new amount 11. Whether validity period extended? If yes, provide new validity date 12. Whether pre-closed? If yes, provide the date....
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....bsp; Telephone No. Email List of enclosures Instructions for filling up the form 1) The form is required to be submitted to the authorised dealer bank by the person resident in India with the reporting obligation under regulation 7 of these regulations. 2) Part A and B shall be submitted for issuance of guarantee. Any subsequent change or invocation of guarantee shall be reported by filling Part A and Part C or D, as the case may be. For any given part, fields marked with asterisk ( * ) are mandatory. All other fields such as LEI, CIN, PAN of parties other than reporting party, shall be filled wherever details are available. NIC Code shall be reported till 2-digit as per NIC 2025. 3) In case of....