Brief Overview:
New regulations issued for guarantees involving offshore parties
Technical Details:
Key changes brought by FEMA (Guarantees) Regulations 2026:
JC takeaway:
Certain existing guarantee‑based structures may need a re‑evaluation, as the regulations now appear to cover all cross‑border guarantees – both inbound and outbound. A positive shift, however, is that the RBI has moved towards prescribing rules for guarantees rather than limiting the types of guarantees that can be issued.
For further details, please see:
Foreign Exchange Management (Guarantees) Regulations, 2026
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