External commercial borrowing (ECBs) are loans in India made by non-resident lenders in foreign currency to Indian borrowers. They are used widely in India to facilitate access to foreign money by Indian corporations and PSUs (public sector undertakings).
Fema / RBI : Understand the intricacies of External Commercial Borrowings (ECB) - concept, modes, compliance, and steps. Explore criteria, rest...
Fema / RBI : Explore the impact of FDI restrictions on countries sharing a land border with India and the role of External Commercial Borrowing...
Fema / RBI : This comprehensive article delves into the topic of External Commercial Borrowings (ECB), covering the regulations, eligibility cr...
Fema / RBI : Get answers to your FAQs on External Commercial Borrowing (ECB) and Trade Credits (TC) with updated information as of June 26, 202...
Fema / RBI : Unlock the ABC of External Commercial Borrowings (ECB) under RBI regulations. Delve into the basics, eligibility, documentation, a...
Fema / RBI : Presenting the General Budget 2012-13 in LokSabha here today, ShriPranab Mukherjee, Finance Minister announced various majors for ...
Fema / RBI : With a view to rationalising the present arrangements relating to foreign portfolio investments by Foreign Institutional Investors...
Fema / RBI : Those exercising the option include Mahindra & Mahindra, Reliance Communications, Tulip Telecom, Moser Baer, Jubilant Organosys, R...
Finance : Reserve Bank of India has issued A. P. (DIR series) circular no. 26 dated October 22, 2008, to modify some aspects of the ECB poli...
Fema / RBI : i) increase the automatic route limit from USD 750 million or equivalent to USD 1.5 billion or equivalent. ii) increase the all...
Fema / RBI : As a measure of simplification of the existing procedures, it has been decided to delegate powers to the designated AD Category-I ...
Fema / RBI : Hitherto, Indian corporates in the services sectors viz., hotels, hospitals and software were allowed to avail ECB upto USD 100 mi...
Fema / RBI : India's central bank on Tuesday eased oversees borrowing rules for Infrastructure Finance Companies (IFC). The IFC's will not nee...
Fema / RBI : Attention of Authorised Dealer Category - I (AD Category - I) banks is invited to Notification No.FEMA 29/2000-RB dated September ...
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 various types of foreign flows, which are taking advantage of arbitrage across the respective stand-alone regulations and generate recommendations to Government.
Attention of Authorized Dealer Category – I (AD Category – I) banks is invited to the A.P. (DIR Series) Circular No. 46 dated January 2, 2009, A.P. (DIR Series) Circular No. 64 dated April 28, 2009 and A.P. (DIR Series) Circular No. 71 dated June 30, 2009 relating to External Commercial Borrowings (ECB).
As announced in Para 107 of the Annual Policy Statement 2009-10 and considering the continuing pressure on credit spreads in the international markets, it has been decided to extend the relaxation in all–in-cost ceilings, under the approval route, until December 31, 2009. This relaxation will be reviewed in December 2009.
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.
Government has focussed its attention on countering the impact of the global recession on India’s economic growth. On the monetary side, the RBI has sought to pump sufficient liquidity into the banking system to enable bank credit to meet the expanded requirements of the economy keeping in mind the contraction in credit from non-bank sources. Banks have been provided adequate liquidity through a series of reductions in the CRR and additional flexibility in meeting the SLR requirement.
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 Automatic Route. Accordingly, the requirement of minimum average maturity period of seven years for ECB more than USD 100 million for Rupee capital expenditure by the borrowers in the infrastructure sector has been dispensed with.
