Our Company is a subsidiary of an Italian Company.
Now inorder to meet the capital requirements of the Company, we are planning to arrange a term loan from a Financial Institution in India.
Also, we are contemplating to provide security to the FI only in the form of Corporate Guarantee from our parent Company in Italy.
Since extension of guarantee by a NR entity to an Resident Entity falls under Capital Account Transaction as defined in the FEMA, 1999 kindly let me know what are the procedural formalities to be complied with in this regard.
CAclubindia
