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Presently, non-resident acquirers, subject to certain conditions, can open Escrow account and Special account with a bank in India for acquisition/transfer of shares/convertible debentures of an Indian company through open offers/delisting/exit offers.
This circular permits a bank to issue bank guarantee, without prior approval of RBI, on behalf of a nonresident acquiring shares or convertible debentures of an Indian company through open offers/delisting/ exit offers, if:
a) The transaction is in compliance with the provisions of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeover) [SEBI (SAST)] Regulations.
b) The guarantee is covered by a counter guarantee of a bank of international repute.
c) The guarantee will be valid for a tenure coterminus with the offer period only, as required under the SEBI (SAST) Regulations.
