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megha thakkar (Querist)
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31 October 2012 Can a foreign national (U.S. citizen), who is a director &
shareholder in an indian private limited company, give loan to the
said company by bringing in money in foreign currency ?

Can this loan be utilised for fulfilling the working capital
requirements of the said company

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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02 November 2012 No foreign Director can not give loan unless the same falls under the ECB guidelines.

ECB Guidelines don't permit use of foreign funds for working capital purpose.

Anuj
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