Issue of corporate guarantee on behalf of second generation or subsequent level step down operating subsidiaries

 
Issue of corporate guarantee on behalf of second generation or subsequent level step down operating subsidiaries

It has also been decided that issue of corporate guarantee on behalf of second generation or subsequent level step down operating subsidiaries will be considered under the Approval Route, provided the Indian Party directly or indirectly holds 51 per cent or more stake in the overseas subsidiary for which such guarantee is intended to be issued.”

2. The contents of the paragraph are amended to read as under:

“(b) Further, it has also been decided that issue of corporate guarantee on behalf of second generation or subsequent level step down operating subsidiaries will be considered under the Approval Route, provided the Indian Party indirectly holds 51 per cent or more stake in the overseas subsidiary for which such guarantee is intended to be issued.”


Ref -A.P. (DIR Series) Circular No. 41 dated September 10, 2013