The Reserve Bank of India (RBI) on Friday decided not to treat/reckon the renewal/rollover of an existing/original guarantee, which is part of the total financial commitment of the Indian party, as a fresh financial commitment subject to certain riders.
These riders, including the existing/original guarantee, was issued in terms of the then extant/prevailing FEMA. Besides that there is no change in the end use of the guarantee, there is no change in any of the terms & conditions, including the amount of the guarantee except the validity period.
RBI also said that the reporting of the rolled over guarantee would be done as a fresh financial commitment in Part II of form overseas direct investments. And if the Indian party is under investigation by any investigation / enforcement agency or regulatory body, the concerned agency / body shall be kept informed about the same, said RBI.
RBI also said that in case these conditions are not met, the Indian party shall obtain prior approval of RBI for rollover / renewal of the existing guarantee through the designated bank.
These riders, including the existing/original guarantee, was issued in terms of the then extant/prevailing FEMA. Besides that there is no change in the end use of the guarantee, there is no change in any of the terms & conditions, including the amount of the guarantee except the validity period.
RBI also said that the reporting of the rolled over guarantee would be done as a fresh financial commitment in Part II of form overseas direct investments. And if the Indian party is under investigation by any investigation / enforcement agency or regulatory body, the concerned agency / body shall be kept informed about the same, said RBI.
RBI also said that in case these conditions are not met, the Indian party shall obtain prior approval of RBI for rollover / renewal of the existing guarantee through the designated bank.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%