A.P. (DIR Series) Circular No.31
September 04, 2013
All Authorised Dealer Category-I Banks
Madam / Sir,
External Commercial Borrowings (ECB) from the foreign equity holder
Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to the A.P. (DIR Series) Circular No. 5 dated August 1, 2005, as amended from time to time, relating to the External Commercial Borrowings (ECB).
2. As per the extant ECB policy, borrowings in the form of ECB cannot be utilized for general corporate purpose.
3 On a review, it has been decided to permit eligible borrowers to avail of ECB under the approval route from their foreign equity holder company with minimum average maturity of 7 years for general corporate purposes subject to the following conditions:
4. The above modifications to the ECB guidelines will come into force with immediate effect. All other aspects of extant ECB guidelines shall remain unchanged.
5 A.D. Category-I banks may bring the contents of this circular to the notice of their constituents and customers.
6. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.
(Rudra Narayan Kar)
Chief General Manager-in-Charge
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