SCHEDULE - old - Regulation 6 [Old Schedule] - Conditions of Raiseing Foreign Currency Loans - Foreign Exchange Management (Borrowing or Lending In Foreign Exchange ) Regulations, 2000

This Schedule has been replaced by Schedule I , Schedule II and Schedule III vide Notification No. 126/2004 dated 13/12/2004 Not Effective Now SCHEDULE [See Regulation 6] Conditions of Raiseing Foreign Currency Loans 1. The borrowing in foreign exchange by a person resident in India may be under any of the Schemes set out in this Schedule. (i) Eligibility (a) Any company registered under the Companies Act, 1956, other than a financial intermediary (such as a bank, financial institution, housing finance company and a non-banking finance company) is eligible to borrow under this Schedule. (b) Non-Government Organisations engaged in micro-finance activities may borrow in foreign exchange under this Schedule under such terms and conditions as specified by the Reserve Bank from time to time. (c) Any other entity as specified by the Reserve Bank. (ii) Amount (a) The borrowing in foreign exchange by an entity as specified in paragraph (i) (a) of section I of Schedule I, under the Automatic Route whether raised in tranches or otherwise, shall not exceed USD 500 million or equivalent in any one financial year (April - March). (b) The borrowings in foreign currency under as specified in paragraph (i) (b) of section I of Schedule I, by a non-government organisation engaged in micro-finance activities shall not exceed USD 5 million or equivalent during a financial year (April - March). (iv) A. (c) (d) any other eligible purpose as specified by the Reserve Bank. 2. The application for the approval of the Reserve Bank under Regulation 6 for borrowing under any of the Schemes shall be made in Form ECB annexed to these Regulations. 3. The borrowing in foreign exchange may be from an overseas bank/export credit agency/ supplier of equipment or foreign collaborator, foreign equity holder,NRI,[***] corporate/ institution with a good credit rating from internationally recognised credit rating agency, or from international capital market by way of issue of bonds, floating rate notes or any other debt instrument by whatever name called. 4. The borrower shall not utilise the funds borrowed under any of these Schemes for investment in stock market or in real estate business. i. Short term loan scheme a. Foreign currency credit extended by the overseas supplier of goods to an importer of goods for financing import of goods into India, provided the period of maturity of credit is more than six months but less than three years. b. Foreign currency loan/credit extended to an importer in India for financing imports into India, by any bank or financial institution outside India, provided the period of maturity of loan/credit is less than three years. ii. Borrowing under US dollar Five Million Scheme Borrowing in foreign exchange upto US$ Five Million or its equivalent by an Indian entity for general corporate purposes at a simple minimum maturity of three years. iii. Borrowing under US dollar Ten Million Scheme. Borrowing in foreign exchange not exceeding US$ Ten Million or its equivalent by an Indian entity for the following purposes : a. Borrowing for Financing of Infrastructure Projects i. Borrowing in order to finance equity investment in a subsidiary/joint venture company promoted by the Indian entity for implementing infrastructure projects, provided that the minimum average maturity of loan is three years. In case the loan is to be raised by more than one promoter entity for a single project, the aggregate of loan by all promoters should not exceed US$ 10 million. ii. Foreign currency loan raised by an Indian entity for financing infrastructure project, provided that the minimum average maturity of loan is not less than three years. b. Borrowings by Exporter/Foreign Exchange Earner Borrowing in foreign exchange by an exporter/foreign exchange earner upto three times of the average amount of his annual foreign exchange earnings during the previous three years subject to a maximum of US$ Ten million or its equivalent, with a minimum average maturity of three years. c. Long term Borrowings Borrowing for general corporate purposes at the minimum average maturity of eight years. 1 iv. [OMITTED] - ********************************* Note : 1. Has been Omitted vide Notification No. 075/2002 dated 1/11/2002 , before it was read as, iv. Scheme for raising loans from NRIs on repatriation basis Borrowings not exceeding US$ 2,50,000 or its equivalent in foreign exchange by an individual resident in India from his close relatives resident outside India, subject to the conditions that - a) the loan is free of interest; b) the minimum maturity period of the loan is seven years; c) The amount of loan is received by inward remittance in free foreign exchange through normal banking channels or by debit to the NRE/FCNR account of the non-resident lender; d) The loan is utilised for the borrower's personal purposes or for carrying on his normal business activity but not for carrying on agricultural/plantation activities, purchase of immovable property or shares/debentures/bonds issued by companies in India or for re-lending. Explanation: 'Close relative' means relatives as defined in Section 6 of the Companies Act, 1956.