Regulation 3A - Restriction on obtaining overseas guarantee - Foreign Exchange Management (Guarantees) Regulations, 2000

1 [3A. Restriction on obtaining overseas guarantee No corporate registered under the Companies Act, 1956 (1 of 1956) shall avail domestic rupee denominated structured obligations by obtaining credit enhancement in the form of guarantee by international banks, international financial institutions or joint venture partners, except with the prior approval of the Reserve Bank : Provided howsoever that, 2 [ a person resident in India who is eligible to raise foreign currency loan under sub-regulation (1) of Regulation 6 of Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000 read with Schedule I thereto, ] may obtain, without the prior approval of the Reserve Bank, credit enhancement in the form of guarantee from a person resident outside India for the domestic debts raised by such companies through issue of capital market instrument like bonds and debentures subject to satisfying the terms and conditions as may be stipulated by the Reserve Bank, from time to time, in this regard. ] -------------------- Notes:- 1. Inserted vide Notification No. FEMA251/2012-RB, Dated 06-12-2012 , w.e.f. 26-9-2012 2. Substituted vide Notification No. 269/2013 - FEMA dated March 11, 2013 , before it was read as, a company resident in India engaged exclusively in development of infrastructure (infrastructure defined by the Reserve Bank from time to time in this regard) and infrastructure financial companies, as categorized by Reserve Bank from time to time,".