OVERSEAS DIRECT INVESTMENTS - ROLLOVER OF GUARANTEES

ISSUING AUTHORITY : RESERVE BANK OF INDIA

DATE OF ISSUE : 03/01/2014

EFFECTIVE DATE : IMMEDIATE EFFECT

CIRCULAR NO. 83

It has been 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 following:

• existing/original guarantee, was issued in terms of the then extant/prevailing FEMA. 

• 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.

• 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.

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.

For detailed Circular, please follow the link below:
A.P. (DIR Series) Circular No.83