Is there any restriction for Indian Company to borrow fund from NRI who is a director of a company?
Jithin scaria (Practicing Company Secretary) (112 Points)
25 July 2016Is there any restriction for Indian Company to borrow fund from NRI who is a director of a company?
Shubham Jain
(Haryana)
(131 Points)
Replied 25 July 2016
No there is No restriction
But director has to give a declaration that he is giving loan out of his income not from borrowed fund.
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 28 July 2016
Refer Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations 2000 and Master Direction 5/2015-16 issued by RBI.
CS MOHIT SALUJA
(PRACTICING CS Jalandhar 9914558709)
(5155 Points)
Replied 30 July 2016
mainly these are known as ECB Guidelines i.e. External Commercial Borrowings
Jithin scaria
(Practicing Company Secretary)
(112 Points)
Replied 30 July 2016
He is the Director of the Company and not a foreigner but he is a NRI is ECB applicable?
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