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TMI BlogRegulation 6(1) - Borrowings in Foreign Exchange under the Automatic RouteX X X X Extracts X X X X X X X X Extracts X X X X ..... ] 11[(b) Non Government Organisations and Micro Finance Institutions 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 : 16[provided in case the entity is under investigation/ adjudications/appeals by the law enforcing agencies, for violation of any of the provision of the regulations under the Act, it shall indicate to the Authorized Dealers (ADs) about pendency of investigations/adjudications/appeals, while availing foreign currency borrowing.]] (c) Any other entity as specified by the Reserve Bank. 17[provided in case the entity is under investigation/ adjudications/appeals by the law enforcing agencies, for violation of any of the provision of the regulations under the Act, it shall indicate to the Authorized Dealers (ADs) about pendency of investigations/adjudications/appeals, while availing foreign currency borrowing.]] (ii) Amount 2a. 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 e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansport); (d) Water and sanitation which will include (i) water supply pipelines, (ii) solid waste management, (iii) water treatment plants, (iv) sewage projects (sewage collection, treatment and disposal system), (v) irrigation (dams, channels, embankments, etc.) and (vi) storm water drainage system; (e) (i) mining, (ii) exploration and (iii) refining; (f) Social and commercial infrastructure which will include (i) hospitals (capital stock and includes medical colleges and para medical training institutes), (ii) Hotel Sector which will include hotels with fixed capital investment of ₹ 200 crore and above, convention centres with fixed capital investment of ₹ 300 core and above and three star or higher category classified hotels located outside cities with population of more than 1 million (fixed capital investment is excluding of land value), (iii) common infrastructure for industrial parks, SEZs, tourism facilities, (iv) fertilizer (capital investment), (v) post harvest storage infrastructure for agriculture and horticulture produce including cold storage, (vi) soil testing laboratories and (vii) cold chain (includes cold room facility for farm level pre-cooling ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) guarantee or Letter of Comfort or Standby Letter of Credit in favour of overseas lender on behalf of their constituents for their borrowings in foreign exchange. (viii) Prepayment Notwithstanding the provisions of clause (v) above, prepayment of outstanding foreign currency loan may be made as per the directives issued by the Reserve Bank from time to time. 7[(ix) Parking of loan amount The proceeds of borrowings in foreign exchange availed under the schedule may, pending utilisation for permissible end-uses be parked abroad or in India as directed by the Reserve Bank from time to time]. (x) Loan Agreement The loan agreement entered into by the borrower with the overseas lender shall strictly conform with these Regulations.. The procedure for obtaining loan registration number would be prescribed by the Reserve Bank. (xi) Drawal of Loan Draw-downs of borrowing in foreign exchange shall be made strictly in accordance with the terms of the loan agreement only after obtaining the loan registration number from the Reserve Bank. (xii) Reporting The borrower shall adhere to the reporting procedure as specified by the Reserve Bank from time to time. (xiii) Debt Ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he existing proviso will cease to exist, in respect of borrowings from overseas, whether in foreign currency or Indian Rupees, such as addition / deletion of borrowers eligible to raise such borrowings, overseas lenders / investors, purposes of such borrowings, change in amount, maturity and all-incost, norms regarding security, pre-payment, parking of ECB proceeds, reporting and drawal of loan, refinancing, debt servicing, etc. ] ************************* Notes : 1.Has been substituted vide Notification No. 142/2005 dated 6/12/2005, before it was read as, "i) Eligibility:- Any corporate registered under the Companies Act, 1956 shall be eligible to borrow in terms of this Schedule. However, financial intermediaries (such as banks, financial institutions (FIs), housing financing companies, Non-Banking Finance Companies, Trusts, Non-Profit making organisations (NPOs), Micro Finance Institutions, proprietorship/partnership concerns and individuals are not eligible to borrow under the Automatic Route". 2. Has been substituted vide Notification No.Supra, before it was read as, "ii) Amount:- The borrowing in foreign exchange under the Automatic Route whether raised in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d vide Notification [No. FEMA 232/2012-RB], Dated 30-05-2012, with effect from 19th day of December 2011, before it was read as:- "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)." 13. Substituted vide Notification [No. FEMA 232/2012-RB], Dated 30-05-2012, with effect from 23rd day of September 2011 before it was read as:- "Maturity The maturity of the borrowings in foreign exchange shall be as under : Amount Minimum Average Maturity i) Up to US$ 20 Million or equivalent Not less than 3 years ii) Exceeding US$ 20 Million and upto US$ 500 Million or equivalent Not less than 5 years Note - Borrowing up to US$ 20 Million can have call/put option provided the minimum average maturity of 3 years as prescribed above is complied with before exercising call/put option." 14. Inserted vide Notification No. FEMA 245/2012-RB, dated 12/11/2012 15. Substituted vide Notification No. FEMA. 256/2013-RB dated 6/02/2013, before it was read as, "8[Provided that they have not at ..... X X X X Extracts X X X X X X X X Extracts X X X X
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