Regulation 5(2B) - Terms and conditions for opening of Escrow Account

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..... y-I bank in India as Escrow agent. The Escrow account may be opened jointly and severally. Further, securities kept/linked with such Escrow accounts may be linked with demat account maintained with SEBI authorised Depository Participants as Escrow agents. 2. The account shall be non-interest bearing. 3. No fund or non-fund based facilities would be permitted against the balances in the Escrow acco .....

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..... ount is opened should be compliant with extant FEMA provisions. Further, for the purposes of FDI reporting, date of transfer of funds into the bank account of the issuer or transferor of shares, shall be the relevant date of remittance. 7. Where the transaction is governed by SEBI guidelines/regulations, operation of the Escrow accounts shall also be in accordance with the relevant SEBI regulation .....

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..... er. In case the Escrow account is required to be maintained beyond six months, specific permission from the Reserve Bank has to be sought. 10. Requirement of compliance with KYC guidelines issued by the Reserve Bank/SEBI shall rest with the AD Category-I bank/SEBI authorised Depository Participants. 11. The terms of the Escrow account shall be laid down strictly in the Escrow agreement, Share purc .....

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