RBI/2013-14/241
A.P. (DIR Series) Circular No. 41
September 10, 2013
To
All Category - I Authorised Dealer Banks
Madam/ Sir,
Overseas Direct Investment – Amendment
Attention of the Authorised Dealer (AD - Category I) banks is invited to para
2(iv)(b) of
A. P. (DIR Series) Circular No. 69 dated May 27, 2011 on Overseas
Direct Investment – Liberalization / Rationalization, which reads 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 directly
or indirectly holds 51 per cent or more stake in the overseas subsidiary for
which such guarantee is intended to be issued.”
- 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.”
- All other contents of the
A. P. (DIR Series) Circular No. 69 dated May 27,
2011 shall remain un-changed.
- AD - Category I banks may bring the contents of this circular to the notice
of their constituents and customers concerned.
- The directions contained in this circular have been issued under Sections
10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and
are without prejudice to permissions / approvals, if any, required under any
other law.
Yours faithfully,
(C.D. Srinivasan)
Chief General Manager