Direct Tax
Consulting
ESG Advisory
Indirect Tax
Growth Advisory
Internal Audit
BFSI Audit
Industry Audit
Valuation
RBI Services
SEBI Services
IRDA Registration
AML Advisory
IBC Services
NBFC Compliance
IRDA Compliance
Finance & Accounts
Payroll Compliance Services
HR Outsourcing
LPO
Fractional CFO
General Legal
Corporate Law
Debt Recovery
Select Your Location
FDI as debt or preference shares can be raised under ECB norms & External Commercial Borrowing in India is highly regulated.
External Commercial Borrowing is nothing but money borrowed from a foreign source or foreign institutions. Such money borrowed from abroad shall be utilized for commercial activities.
As defined, External Commercial Borrowings (ECB) refer to commercial loans [in the form of bank loans, buyers’ credit, suppliers’ credit, securitized instruments (e.g. floating rate notes and fixed rate bonds)] availed from non-resident lenders with a minimum average maturity of 3 years. RBI has laid down guidelines to deal with External Commercial Borrowing.
Followings are the entities allowed to raise money through ECB:
Maximum corporate can raise USD 500 million or equivalent during a financial year.
ECB raised up for foreign currency expenditure for allowable end-uses shall not be remitted to India and shall be parked overseas.
ECB proceeds which are parked out of the country can be invested in the following liquid assets:
Prepayment of ECB up to USD 500 million may be allowed by AD banks without prior approval of RBI subject to compliance with the stipulated minimum average maturity period as applicable to the loan.
To provide greater transparency, information with regard to the name of the borrower, amount, purpose, and maturity of ECB under both Automatic Route and Approval Route are put on the Reserve Bank website on a monthly basis with a lag of one month to which it relates.
The insurance industry is on the edge of a transformative era. As we enter 2024, technological...
The Indian Cybercrime Coordination Centre reported a rise in digital financial fraud, which has...
During its 203rd meeting on 25th November 2023, the Securities and Exchange Board of India (SEB...
If you want to expand your portfolio beyond standard stocks and bonds, Alternative Investment F...
NBFCs in India encounter significant challenges related to the compounded effects of outstandin...
Are you human?: 6 + 3 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
India being one of the largest and fastest-growing market, foreign entities have developed a keen interest to estab...
25 Mar, 2021
FEMA was introduced in India with a view to simplify import and export trade and to protect foreign exchange market...
22 Oct, 2021