Professional Documents
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Me
&
u i s i t i
A cq
o n s
PRESENTATIO
N ON:
ECB
&
FCCB
Presented By :
Commercial
Borrowing
ECB
• A source of funds for financing
expansion of existing capacity and for
fresh investment out of territory
1. ECB up to $ 20 m or equivalent in a
financial year with minimum average
maturity of three years .
2. ECB above $ 20 m and up to USD 500
million or equivalent with a minimum
average maturity of five years.
Utilization
Import of capital goods (as classified by DGFT in the
Foreign Trade Policy), by new or existing production
units, in real sector - industrial sector SME and
infrastructure sector
• Real estate
A committee established to
accept the proposal scrutiny
it and forward application to
RBI for permission for
Approval route ECB
Compliances with ECB
Guidelines
• Contravention of the ECB guidelines
will be viewed seriously
• Penal action will be taken under FEMA
1999 (cf. A. P. (DIR Series) Circular No.
31 dated February 1, 2005)
• The designated AD bank is required to
ensure that raising / utilization of ECB
is in compliance with ECB guidelines at
the time of certification.
Conversion of ECB
into Equity
• The activity of the company is covered under the
Automatic Route for Foreign Direct Investment or
Government approval for foreign equity
participation has been obtained by the company,
• The foreign equity holding after such conversion
of debt into equity is within the sectoral cap, if
any,
• Pricing of shares is as per SEBI and erstwhile CCI
guidelines/regulations in the case of listed/unlisted
companies as the case may be.
$ 5 Million Scheme
AD banks are permitted to approve elongation of
repayment period for loans raised under the
$ 5 m Scheme, provided
• The overseas lender has given letter for such
reschedulement without any additional cost.
• Such approval with existing and revised repayment
schedule along with the Loan Key/Loan Registration
Number should be initially communicated to the Chief
General Manager-in-Charge, Foreign Exchange
Department, Reserve Bank of India, Central Office,
ECB Division, Mumbai within seven days of approval
and subsequently in ECB - 2.
Application
2001-02 2652.64
2002-03 4234.96
2003-04 8175.50
Inflow of ECB
Month (2008) ECB Inflows $ (mn approx)
May 0995.67
June 1446.08
July 2461.82
August 0897.59
September 2834.95
October 1125.23
SOURCE-RBI
Foreign
Currency
Convertible
Bond
FCCB
i. Automatic Route