SBLC invoked - reg.

[csyogan .]

an indian public company has issued an SBLC to an overseas entity based on which the overseas entity has taken loan from an overseas bank

now that overseas entity is unable to repay the loan, and the sblc got invoked. the indian bank has debited the cash credit account of the indian company.

what are the fema implications for this case..?

note :

1. all fema regulations with respect to issue of sblc have been complied with

2. odi form is filed for issuing sblc to overseas entity

3. the overseas investments / guarantees etc., are within the 100% networth limits stipulated by rbi

4. sblc has been taken at 100% for the calculation of 100% networth limits

regards,

yogan.

[dipti sukhadiya]

Hi yogan

Since you are working in the area , pls let me know whether Share Warrant issued (fully paid up) to promoters and promoters group in Unlisted Public co is counted as Net Worth ?

Pls share your experience.

Regards
Dipti

[csyogan .]

what relevance does an sblc have with a share warrant
kindly explain..

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[dipti sukhadiya]

it is for calculating the total exposure limit for getting the SBLC limit sanction. As fas as i understand , it is 100% of net worth the limit is calculated  so was asking the same. In case you have idea.