01 November 2008
Dear All My bank is providing finance to a indian company for investing in equity of a company located in saudi arabi. Is there any way through which shares of the saudi company can be pledged or can i create any charge on the assets of the saudi company in favour of the bank. In other ways how can i get a secuirty of the saudi company to the extent of my loan
Presently i have taken the corporate guarantee of the borrower company and extension of charge on the assets of the borrower.
03 November 2008
If the banks are willing to accept the shares as security, I see no problem, as they, being authorised dealers, will advice and do the needful under the FEMA.
03 November 2008
Hi Srinivasraghavan. My question is "any way of pledging the equity of the company located in the saudi arabia in the favour of bank located in India" I have been told that there is no system of pledging of shares of the companies located in saudi.
03 November 2008
If the shares of Saudi company is not to be pledged due to any special law of that country your question does not serve any purpose is it not?
Regarding the pledging of shares, i came to know through open discusion . So i wanted to confirm from an expert regarding the same. It seems u still not able to get the gist of the problem,once again i will repeat for u "How to secure the loan given to "A" P Ltd for investing in the equity of a company in saudi" ie measures available for securing the loan 1)To say Corporate guarantee of borrower. 2) Extension charge on the assets of the borrower I am interested in knowing more solutions available for securing the loan
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