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Whether shares of a JV/WOS abroad could be pledged for the purpose of financial assistance?

April 26, 2017abroad financial jv pledged purpose Shares wos

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Whether shares of a JV/WOS abroad could be pledged for the purpose of financial assistance?

1 Answer

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10 Posted

• The shares of a JV/WOS can be pledged as a security for availing fund based or non-fund based facility for the concerned entity or for the JV/WOS from an authorised dealer/ public financial institution in India. Q.43 What is the procedure to be followed for disinvestment of existing holding in a JV/WOS? • Disinvestment of holding in a JV/WOS abroad requires prior approval of the Reserve Bank of India for which the holder will have to submit an application furnishing the reasons /justifications for such disinvestment along with a Chartered Accountant’s valuation certificate, latest audited financial statements of the JV/WOS, Board Resolution approving the disinvestment and Chartered Accountant’s certificate regarding position of dues of the WOS and total amount to be received by parent company on disinvestment.