top button
Flag Notify
    Connect to us
      Site Registration

Site Registration

Can an Indian Party utilize the net worth of its Indian subsidiary / holding company for investing in a JV/WOS abroad?

+1 vote
140 views
Can an Indian Party utilize the net worth of its Indian subsidiary / holding company for investing in a JV/WOS abroad?
posted Jul 26, 2017 by Rani Das

Share this question
Facebook Share Button Twitter Share Button LinkedIn Share Button

1 Answer

0 votes

Yes, the Indian party is permitted to issue performance guarantee and 50 per cent of the amount of the performance guarantees will be reckoned for the purpose of computing financial commitment to its JV/WOS overseas which should be within the limit prescribed by the Reserve Bank from time to time. Further, the time specified for the completion of the contract will be the validity period of the related performance guarantee. In cases where invocation of the performance guarantee breach the limit of the prescribed financial commitment, the Indian Party is required to seek prior approval of the Reserve Bank before remitting funds from India, on account of such invocation.

answer Jul 28, 2017 by Mukul Chag
...