Section 10(12)(b) in Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2017

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Union of India - Subsection

Section 10(12)(b) in Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2017

(b)Any person resident outside India holding capital instruments in an Indian company or units of an investment vehicle may pledge the capital instruments or units, as the case may be:

(i)in favour of a bank in India to secure the credit facilities being extended to such Indian company for bona fide purposes,

(ii)in favour of an overseas bank to secure the credit facilities being extended to such person or a person resident outside India who is the promoter of such Indian company or the overseas group company of such Indian company,

(iii)in favour of a Non-Banking Financial Company registered with the Reserve Bank to secure the credit facilities being extended to such Indian company for bona fide purposes,

(iv)subject to the Authorised Dealer bank satisfying itself of the compliance of the conditions stipulated by the Reserve Bank in this regard.

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Union of India - Subsection

Section 10(12)(b) in Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2017