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Fema / RBI - What is ECB: External Commercial Borrowings are commercial loans raised by eligible resident entities from recognised non-resident. The ECB has been classified in category Foreign Denomination ECB: Loan raised in any freely convertible Foreign Currency INR Denomination ECB: Loan raised in INR Method of raising ECB: ECB can be accessed und...
Read MoreFema / RBI - Under the new framework, the definition of an ‘Indian entity’ specifically includes LLP registered under LLP Act, 2008. The erstwhile framework defined ‘Indian entity’ as a company or a body corporate or a firm in India....
Read MoreFema / RBI - What is a startup? A startup is an entity registered as a Private Limited Company (registered under Companies Act 2013) or Limited Liability Partnership (registered under Limited Liability Partnership Act 2008) or Partnership Firm(registered under Partnership Act 1932), working towards innovation, development or improvement of product or ...
Read MoreFema / RBI - Key provisions of latest RBI/FED/2018-19/15 – FED Master Direction No.5/2018-19 dated March 26, 2019 in relation to External Commercial Borrowing 1. Meaning of ECB ♠ Generally External Commercial Borrowings (ECB) refer to commercial loan availed by eligible resident entities from non-resident lenders i.e. from foreign sources. ♠...
Read MoreFema / RBI - External Commercial Borrowings (ECB) and Trade Credits (Updated as on May 29, 2019) PART I – EXTERNAL COMMERCIAL BORROWINGS A. BASIC QUERIES 1. Where can one get the details of extant External Commercial Borrowings (ECB) and Trade Credits (TC) framework? Master Direction No. 5 on ‘External Commercial Borrowings, Trade Credits and Stru...
Read MoreFema / RBI - Presenting the General Budget 2012-13 in LokSabha here today, ShriPranab Mukherjee, Finance Minister announced various majors for mitigating shortage of housing for low income groups. The Finance Minister proposed allowing External Commercial Borrowings (ECB) for low cost affordable housing projects and setting-up of a Credit Guarantee Tr...
Read MoreFema / RBI - With a view to rationalising the present arrangements relating to foreign portfolio investments by Foreign Institutional Investors (FIIs)/ Non Resident Indians (NRIs) and other foreign investments like Foreign Venture Capital Investor (FVCI) and Private Equity entities etc., the Government has decided to set up a working group to look at ...
Read MoreFema / RBI - Those exercising the option include Mahindra & Mahindra, Reliance Communications, Tulip Telecom, Moser Baer, Jubilant Organosys, Radico Khaitan, Hotel Leela, Pidilite Industries and Uflex. Together, these firms have bought back bonds worth $240 million (around Rs 1,200 crore) at a discount of 30 to 50 per cent on the face value....
Read MoreFema / RBI - Reserve Bank of India has issued A. P. (DIR series) circular no. 26 dated October 22, 2008, to modify some aspects of the ECB policy as indicated below- Henceforth, ECB up to USD 500 million per borrower per financial year would be permitted for Rupee expenditure and / or foreign currency expenditure for permissible end - uses under the A...
Read MoreRBI/2011 -12/169 A. P. (DIR Series) Circular No. 11 - (07/09/2011) - As a measure of simplification of the existing procedures, it has been decided to delegate powers to the designated AD Category-I banks to approve the request from the ECB borrowers with respect to change in the recognized lender when the original lender is an international bank or a multilateral fi...
Read MoreA.P. (DIR Series) Circular No. 8 - (12/08/2010) - Hitherto, Indian corporates in the services sectors viz., hotels, hospitals and software were allowed to avail ECB upto USD 100 million per financial year under the automatic route for permissible end-uses. ECB beyond USD 100 million was arguably not permissible even under the approval route....
Read MoreRBI/2009-10/456 A. P. (DIR Series) Circular No. 51 - (11/05/2010) - India's central bank on Tuesday eased oversees borrowing rules for Infrastructure Finance Companies (IFC). The IFC's will not need the central bank's nod to raise overseas funds equivalent to or less than half of their own funds, the Reserve Bank of India (RBI) said in a statement....
Read MoreRBI/2009-10/335 , A.P. (DIR Series) Circular No. 40 - (02/03/2010) - Attention of Authorised Dealer Category - I (AD Category - I) banks is invited to Notification No.FEMA 29/2000-RB dated September 26, 2000 viz. Payment to person resident outside India on invocation of guarantee, A.P. (DIR Series) Circular No. 28 dated March 30, 2001 and A.P. (DIR Series) Circular N...
Read MoreRBI/2009-10/ 292 A.P. (DIR Series) Circular No. 28 - (25/01/2010) - As per the extant policy, eligible borrowers in the telecommunication sector are permitted to avail of ECB for the purpose of payment for spectrum allocation, under the automatic route. Keeping in view the large outlay of funds required to be paid directly to the Government within a limited period o...
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RBI/2011 -12/169 A. P. (DIR Series) Circular No. 11 - (07/09/2011) -
A.P. (DIR Series) Circular No. 8 - (12/08/2010) -
