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TMI BlogMaster Circular on External Commercial Borrowings and Trade Credits (Updated up to June 11, 2015)X X X X Extracts X X X X X X X X Extracts X X X X ..... fications for detailed information, if so needed. 3. This Master Circular is being updated from time to time as and when the fresh instructions are issued. The date up to which the Master Circular has been updated is suitably indicated. Yours faithfully (B P Kanungo) Principal Chief General Manager Index PART I EXTERNAL COMMERCIAL BORROWINGS (ECB) I.(A) AUTOMATIC ROUTE i) Eligible Borrowers ii) Recognised Lenders iii) Amount and Maturity iv) All-in-cost ceilings v) End-use vi) Payment for Spectrum Allocation vii) End-uses not permitted viii) Guarantees ix) Security x) Parking of ECB proceeds xi) Prepayment xii) Refinancing of an existing ECB xiii) Debt Servicing xiv) Corporates Under Investigation xv) Procedure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TRADE CREDITS FOR IMPORTS INTO INDIA a) Amount and Maturity b) All-in-cost Ceilings c) Guarantee d) Reporting Arrangements Annex-I - Form ECB Annex II - Form-83 Annex-III - ECB - 2 Annex-IV - Form - TC Annex V - Statement on Guarantees / Letter of Undertaking / Letter of Comfort issued by Authorised Dealer banks Annex VI - Calculation of Average Maturity- An Illustration Annex VII Quarterly Statement of guarantee availed of from non-resident entities for fund and non-fund based activities Appendix List of Notification/ A.P. (DIR Series) Circulars PART I EXTERNAL COMMERCIAL BORROWINGS (ECB) Indian companies are allowed to access funds from abroad in the following methods: (i) External Commercial Borrowings (ECB) : ECBs refer to commercial loans in the form of bank loans, securitized instruments (e.g. floating rate notes and fixed rate bonds, non-convertibl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re also applicable to FCEBs. ECB can be accessed under two routes, viz., (i) Automatic Route outlined in paragraph I (A) and (ii) Approval Route outlined in paragraph I (B). ECB for investment in real sector-industrial sector, infrastructure sector and specified service sectors in India as indicated under para I (A) (i) (a) are under the Automatic Route, i.e. do not require Reserve Bank / Government of India approval. In case of doubt as regards eligibility to access the Automatic Route, applicants may take recourse to the Approval Route. It is clarified that eligibility for an ECB in respect of eligible borrowers, recognised lenders, end-uses, etc. have to be read in conjunction and not in isolation. I. (A) AUTOMATIC ROUTE The following types of proposals for ECBs are covered under the Automatic Route. i) Eligible Borrowers (a) Corporates, including those in the hotel, hospital, software sectors (registered under the Companies Act, 1956), Non-Banking Finance Companies (NBFCs) - Infrastructure Finance Companies (IFCs), NBFCs - Asset Finance companies (AFCs), Small Industries Development Bank of India (SIDBI) except financial intermediaries, such as banks, financia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (i) Corporates in the services sector viz. hotels, hospitals and software sector. (j) Companies in miscellaneous services sector (only from overseas direct / indirect equity holders and group companies). Companies in miscellaneous services mean companies engaged in training activities (but not educational institutes), research and development activities and companies supporting infrastructure sector. Companies doing trading business, companies providing logistics services, financial services and consultancy services are, however, not covered under the facility. (k) Holding Companies / Core Investment Companies (CICs) coming under the regulatory framework of the Reserve Bank are permitted to raise ECB for project use in Special Purpose Vehicles (SPVs) provided the business activity of the SPV is in the infrastructure sector where infrastructure is defined as per the extant ECB guidelines. The infrastructure project is required to be implemented by the SPV established exclusively for implementing the project and is subject to conditions. In case of Holding Companies that come under the Core Investment Company (CIC) regulatory framework of the Reserve Bank, the ECB availed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hall be reckoned for the purpose of calculating the equity of the foreign equity holder in the term ECB liability-equity ratio. Where there are more than one foreign equity holders in the borrowing company, the portion of the share premium in foreign currency brought in by the lender(s) concerned shall only be considered for calculating the ECB liability-equity ratio for reckoning quantum of permissible ECB. For calculating the ECB liability , not only the proposed borrowing but also the all outstanding ECBs shall be reckoned. (6) Overseas organizations and individuals providing ECB need to comply with the following safeguards: i. Overseas Organizations proposing to lend ECB would have to furnish to the AD bank of the borrower a certificate of due diligence from an overseas bank, which, in turn, is subject to regulation of host-country regulator and adheres to the Financial Action Task Force (FATF) guidelines. The certificate of due diligence should comprise the following (i) that the lender maintains an account with the bank for at least a period of two years, (ii) that the lending entity is organised as per the local laws and held in good esteem by the business/local ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... minimum average maturity of five years. i. ECB up to USD 20 million or equivalent can have call/put option provided the minimum average maturity of three years is complied with before exercising call/put option. j. All eligible borrowers can avail of ECBs designated in INR from recognised lenders as per the extant ECB guidelines. k. NGOs engaged in micro finance activities can avail of ECBs designated in INR, from overseas organizations and individuals as per the extant guidelines. iv) All-in-cost ceilings All-in-cost includes rate of interest, other fees and expenses in foreign currency except commitment fee, pre-payment fee, and fees payable in Indian Rupees. The payment of withholding tax in Indian Rupees is excluded for calculating the all-in-cost. The existing all-in-cost ceilings for ECB are as under: Average Maturity Period All-in-cost Ceilings over 6 month LIBOR* Three years and up to five years 350 basis points More than five years 500 basis points * for the respective currency of borrowing or applicable benchmark In the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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, for preservation or storage or agriculture and allied produce, marine products and meat. b. Overseas Direct Investment in Joint Ventures (JV)/ Wholly Owned Subsidiaries (WOS) subject to the existing guidelines on Indian Direct Investment in JV/ WOS abroad. c. Utilization of ECB proceeds is permitted for first stage as well as subsequent stages of acquisition of shares in the disinvestment process to the public under the Government s disinvestment programme of PSU shares. d. Interest during Construction (IDC) for Indian companies which are in the infrastructure sector, where infrastructure is defined as per the extant ECB guidelines, subject to IDC being capitalized and forming part of the project cost. e. For on-lending to self-help groups or for micro-credit or for bonafide micro fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he stated purpose from the domestic lenders. (ii) Availing of short term foreign currency loan in the nature of bridge finance for the purpose of making upfront payment and replace the same with a long term ECB subject to condition that the long term ECB is raised within a period of 18 months from the date of drawdown of the bridge finance. (iii) ECB can be availed of from their ultimate parent company without any maximum ECB liability-equity ratio subject to the condition that the lender holds minimum paid-up equity of 25 per cent in the borrower company, either directly or indirectly. (iv) Such ECB cannot be raised from overseas branches / subsidiaries of Indian banks. vii) End-uses not permitted Other than the purposes specified hereinabove, the borrowings shall not be utilized for any other purpose including the following purposes, namely: (a) For on-lending or investment in capital market or acquiring a company (or a part thereof) in India by a corporate [investment in Special Purpose Vehicles (SPVs), Money Market Mutual Funds (MMMFs), etc., are also considered as investment in capital markets]. (b) for real estate sector, (c) for general corporate purpose which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or otherwise, will be restricted to the outstanding claim against the ECB. Encumbered movable assets may also be taken out of the country. (c) Creation of Charge over Financial Securities Pledge of shares of the borrowing company held by the promoters as well as in domestic associate companies of the borrower will be permitted. Pledge on other financial securities, viz. bonds and debentures, Government Securities, Government Savings Certificates, deposit receipts of securities and units of the Unit Trust of India or of any mutual funds, standing in the name of ECB borrower/promoter, will also be permitted. In addition, security interest over all current and future loan assets and all current assets including cash and cash equivalents, including Rupee accounts of the borrower with AD Category-I banks in India, standing in the name of the borrower/promoter, can be used as security for ECB. The Rupee accounts of the borrower/promoter can also be in the form of escrow arrangement or debt service reserve account. In case of invocation of pledge, transfer of financial securities shall be in accordance with the extant FDI/FII policy including provisions relating to sectoral ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Foreign Exchange Management Act (FEMA), 1999. The designated AD bank is also required to ensure that the ECB proceeds meant for Rupee expenditure are repatriated to India immediately after drawdown. xi) Prepayment Prepayment of ECB up to USD 500 million may be allowed by AD banks without prior approval of Reserve Bank subject to compliance with the stipulated minimum average maturity period as applicable to the loan. xii) Refinancing of an existing ECB The existing ECB, whether raised under the automatic route or the approval route, may be refinanced by raising a fresh ECB subject to the condition that the fresh ECB is raised at a lower all-in-cost, the outstanding maturity of the original ECB is not reduced (i.e. outstanding maturity of the existing ECB is either maintained or elongated) and the amount of fresh ECB is eligible to be raised under the automatic route. Further, such refinance is not permitted by raising fresh ECB from overseas branches / subsidiaries of Indian banks. xiii) Debt Servicing The designated AD bank has the general permission to make remittances of installment of principal, interest and other charges in conformity with the ECB guideli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nfrastructure projects. f. Foreign Currency Convertible Bonds (FCCBs) by Housing Finance Companies satisfying the following minimum criteria: (i) the minimum net worth of the financial intermediary during the previous three years shall not be less than ₹ 500 crore, (ii) a listing on the BSE or NSE, (iii) minimum size of FCCB is USD 100 million and (iv) the applicant should submit the purpose / plan of utilization of funds. g. Special Purpose Vehicles, or any other entity notified by the Reserve Bank, set up to finance infrastructure companies / projects exclusively, will be treated as Financial Institutions and ECB by such entities will be considered under the Approval Route. h. Multi-State Co-operative Societies engaged in manufacturing activity and satisfying the following criteria i) the Co-operative Society is financially solvent and ii) the Co-operative Society submits its up-to-date audited balance sheet. i. SEZ developers can avail of ECBs for providing infrastructure facilities within SEZ (infrastructure sector as given at I(A)(v)(a) above). j. Developers of National Manufacturing Investment Zones (NMIZs) can avail of ECB for providing infrastructure fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sector where infrastructure is defined as per the extant ECB guidelines. The infrastructure project is required to be implemented by the SPV established exclusively for implementing the project and is subject to conditions. In case of Holding Companies that come under the Core Investment Company (CIC) regulatory framework of the Reserve Bank, the ECB availed should be within the ceiling of leverage stipulated for CICs and in case of CICs with asset size below ₹ 100 crore, the ECB availed of should be on fully hedged basis. l) Cases falling outside the purview of the automatic route limits and maturity period as indicated at paragraph I A (iii). ii) Recognised Lenders (a) Borrowers can raise ECB from internationally recognised sources, such as (i) international banks, (ii) international capital markets, (iii) multilateral financial institutions (such as IFC, ADB, CDC, etc.)/ regional financial institutions and Government owned development financial institutions, (iv) export credit agencies, (v) suppliers' of equipment, (vi) foreign collaborators and (vii) foreign equity holders (other than erstwhile OCBs).Overseas branches / subsidiaries of Indian banks are not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lent in a financial year for meeting foreign currency and/ or Rupee capital expenditure for permissible end-uses. The proceeds of the ECBs should not be used for acquisition of land. An illustration for calculation of average maturity period is provided at Annex VI. All eligible borrowers can avail of ECBs designated in INR from recognised lenders as per the extant ECB guidelines. iv) All-in-cost ceilings All-in-cost includes rate of interest, other fees and expenses in foreign currency except commitment fee, pre-payment fee and fees payable in Indian Rupees. The payment of withholding tax in Indian Rupees is excluded for calculating the all-in-cost. The existing all-in-cost ceilings for ECB are as under: Average Maturity Period All-in-cost Ceilings over 6 month LIBOR* Three years and up to five years 350 basis points More than five years 500 basis points * for the respective currency of borrowing or applicable benchmark In the case of fixed rate loans, the swap cost plus the margin should be the equivalent of the floating rate plus the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly be utilized for repayment of the Rupee loan availed of for 'capital expenditure' of earlier completed infrastructure project(s); and (iii) the refinance shall be utilized only for the Rupee loans which are outstanding in the books of the financing bank concerned. (iv) ECB should not be raised from overseas branches / subsidiaries of Indian banks. Companies in the power sector are permitted to utilize up to 40 per cent of the fresh ECB raised by them towards refinancing of the Rupee loan/s availed by them from the domestic banking system subject to the condition that at least 60 per cent of the fresh ECB proposed to be raised should be utilized for fresh capital expenditure for infrastructure project(s). g. ECB is allowed for Import of services, technical know-how and payment of license fees. The companies in the manufacturing and infrastructure sectors may import services, technical know-how and payment of license fees as part of import of capital goods subject to certain conditions. h. Bridge Finance: Indian companies which are in the infrastructure sector, as defined under the extant ECB policy are permitted to import capital goods by availing of short t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re or more irrespective of geographical location for hotel sector), can avail of ECBs for repayment of outstanding Rupee loans availed of for capital expenditure from the domestic banking system and/or fresh Rupee capital expenditure provided they are consistent foreign exchange earners during the past three financial years and not in the default list/caution list of the Reserve Bank of India. The overall ceiling for such ECBs shall be USD10 (ten) billion and the maximum ECB that can be availed by an individual company or group, as a whole, under this scheme will be restricted to USD 3 billion. Further, the maximum permissible ECB that can be availed of by an individual company will be limited to 75 per cent of the average annual export earnings realized during the past three financial years or 50 per cent of the highest foreign exchange earnings realized in any of the immediate past three financial years, whichever is higher. In case of Special Purpose Vehicles (SPVs), which have completed at least one year of existence from the date of incorporation and do not have sufficient track record/past performance for three financial years, the maximum permissible ECB that can be avail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Partnership Scheme (AHP) constituted for the purpose. ECB proceeds shall be utilized only for low cost affordable housing projects and shall not be utilized for acquisition of land. (b) Developers/builders may avail of ECB for low cost affordable housing projects provided they are companies registered under the Companies Act, 1956, having minimum 3 years experience in undertaking residential projects, have good track record in terms of quality and delivery and the project and all necessary clearances from various bodies including Revenue Department with respect to land usage/environment clearance, etc., are available on record. They should also not have defaulted in any of their financial commitments to banks/ financial institutions or any other agencies and the project should not be a matter of litigation. The ECB should be swapped into Rupees for the entire maturity on fully hedged basis. (c) Housing Finance Companies (HFCs) can also avail of ECB for financing prospective owners of low cost affordable housing units. HFCs registered with the National Housing Bank (NHB) and operating in accordance with the regulatory directions and guidelines issued by NHB are eligible to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) Developers / builders / HFCs / NHB will not be permitted to raise Foreign Currency Convertible Bonds (FCCBs) under this scheme. (h) An aggregate limit of USD 1(one) billion each for the financial years 2013-14, 2014-15 and 2015-16 is fixed for ECB under the low cost affordable housing scheme which includes ECBs to be raised by developers/builders and NHB/specified HFCs. viii) 3G Spectrum Allocation The payment for 3G spectrum allocation, initially met out of Rupee resources raised domestically from banks by the successful bidders and are still outstanding in telecom operator s books of account is allowed to be refinanced with a long-term ECB, till March 31, 2014. ix) End-uses not permitted Other than the purposes specified hereinabove, the borrowings shall not be utilised for any other purpose including the following purposes, namely: (a) For on-lending or investment in capital market or acquiring a company (or a part thereof) in India by a corporate except Infrastructure Finance Companies (IFCs), banks and financial institutions eligible under paragraph I (B) (i) (a), (b), (d), (e), (f), (n), (p). (b) For real estate. (c) For and general corporate purpose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roups or for micro credit, payment for spectrum allocation, repayment of rupee loan availed from domestic banks, etc. should be repatriated immediately for credit to their Rupee accounts with AD Category-I banks in India. ECB borrowers are also allowed to park ECB proceeds in term deposits with AD Category- I banks in India for a maximum period of six months pending utilization subject to conditions. The rupee funds, however, will not be permitted to be used for investment in capital markets, real estate or for inter-corporate lending. The primary responsibility to ensure that the ECB proceeds meant for Rupee expenditure in India are repatriated to India is that of the borrower concerned and any contravention of the ECB guidelines will be viewed seriously and will invite penal action under the Foreign Exchange Management Act (FEMA), 1999. The designated AD bank is also required to ensure that the ECB proceeds meant for Rupee expenditure are repatriated to India immediately after drawdown. xiii) Prepayment (a) Prepayment of ECB beyond USD 500 million will be considered by the Reserve Bank subject to compliance with the stipulated minimum average maturity period as applicable t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry - I banks have been permitted to allow Indian companies to refinance the outstanding FCCBs, under the automatic route, subject to compliance with the terms and conditions set out hereunder: i. Fresh ECBs/ FCCBs shall be raised with the stipulated average maturity period and applicable all-in-cost being as per the extant ECB guidelines; ii. The amount of fresh ECB/FCCB shall not exceed the outstanding redemption value at maturity of the outstanding FCCBs; iii. The fresh ECB/FCCB shall not be raised six months prior to the maturity date of the outstanding FCCBs ; iv. The purpose of ECB/FCCB shall be clearly mentioned as Redemption of outstanding FCCBs in Form 83 at the time of obtaining Loan Registration Number from the Reserve Bank; v. The designated AD - Category I bank should monitor the end-use of funds; vi. ECB / FCCB beyond USD 500 million for the purpose of redemption of the existing FCCB will be considered under the approval route; and vii. ECB / FCCB availed of for the purpose of refinancing the existing outstanding FCCB will be reckoned as part of the limit of USD 750 million available under the automatic route as per the extant norms. Restructu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he issuing company in the promoter group companies. Promoter Group Companies: Promoter group companies receiving investments out of the FCEB proceeds may utilize the amount in accordance with end-uses prescribed under the ECB policy. End-uses not permitted: The promoter group company receiving such investments will not be permitted to utilise the proceeds for investments in the capital market or in real estate in India. All-in-cost: The rate of interest payable on FCEB and the issue expenses incurred in foreign currency shall be within the all-in-cost ceiling as specified by Reserve Bank under the ECB policy. Pricing of FCEB: At the time of issuance of FCEB the exchange price of the offered listed equity shares shall not be less than the higher of the following two: (i) The average of the weekly high and low of the closing prices of the shares of the offered company quoted on the stock exchange during the six months preceding the relevant date; and (ii) The average of the weekly high and low of the closing prices of the shares of the offered company quoted on a stock exchange during the two week preceding the relevant date. Average Maturity: Minimum maturity of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ittance or by debit to FCNR(B)/NRE account. However, in case the liability is discharged by payment out of Rupee balances, the amount recovered can be credited to the NRO account of the non-resident guarantor. The Reserve Bank vide its Notification No. FEMA.29/ RB-2000 dated September 26, 2000 has granted general permission to a resident, being a principal debtor to make payment to a person resident outside India, who has met the liability under a guarantee. Accordingly, in cases where the liability is met by the non-resident out of funds remitted to India or by debit to his FCNR(B) / NRE account, the repayment may be made by credit to the FCNR(B)/NRE/NRO account of the guarantor provided, the amount remitted/credited shall not exceed the rupee equivalent of the amount paid by the non-resident guarantor against the invoked guarantee. AD Category-I banks are required to furnish such details by all its branches, in a manner specified by the Reserve Bank of India (RBI) to the Principal Chief General Manager, Foreign Exchange Department, ECB Division, Reserve Bank of India, Central Office Building, 11th floor, Fort, Mumbai 400 001 so as to reach the Department not later than 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... infrastructure project should have a tripartite agreement with domestic banks and overseas recognized lenders for either a conditional or unconditional take-out of the loan within three years of the scheduled Commercial Operation Date (COD). The scheduled date of occurrence of the take-out should be clearly mentioned in the agreement. ii. The loan should have a minimum average maturity period of seven years. iii. The domestic bank financing the infrastructure project should comply with the extant prudential norms relating to take-out financing. iv. The fee payable, if any, to the overseas lender until the take-out shall not exceed 100 bps per annum. v. On take-out, the residual loan agreed to be taken out by the overseas lender would be considered as ECB and the loan should be designated in a convertible foreign currency and all the extant norms relating to ECB should be complied with. vi. Domestic banks / Financial Institutions will not be permitted to guarantee the take-out finance. vii. The domestic bank will not be allowed to carry any obligation on its balance sheet after the occurrence of the take-out event. viii. Reporting arrangement as prescribed under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers are required to report the converted portion in form FC-GPR to the Regional Office concerned as well as in form ECB-2 clearly differentiating the converted portion from the unconverted portion. The words ECB partially converted to equity should be indicated on top of the ECB-2 form. In subsequent months, the outstanding portion of ECB should be reported in ECB-2 form to DSIM. VII. CRYSTALLISATION OF ECB AD banks desiring to crystallize their foreign exchange liability arising out of guarantees provided for ECB raised by corporates in India into Rupees, may make an application to the Principal Chief General Manager, Foreign Exchange Department, External Commercial Borrowings Division, Reserve Bank of India, Central Office, Mumbai 400 001, giving full details viz., name of the borrower, amount raised, maturity, circumstances leading to invocation of guarantee /letter of comfort, date of default, its impact on the liabilities of the overseas branch of the AD bank concerned and other relevant factors. VIII. ECB UNDER THE ERSTWHILE USD 5 MILLION SCHEME Designated AD banks are permitted to approve elongation of repayment period for loans raised under the erstwhile USD 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f one month to which it relates. XI. RATIONALIZATION OF PROCEDURES - DELEGATION OF POWERS TO AUTHORISED DEALERS (AD) The powers have been delegated to the designated AD Category-I banks to approve the following requests from the borrowers for ECBs raised under the automatic or approval routes, subject to conditions as specified: (a) Changes/modifications in the drawdown/repayment schedule Designated AD Category I banks may approve changes / modifications (irrespective of the number of occasions) in the draw-down and repayment schedules of the ECB whether associated with change in the average maturity period or not and / or with changes (increase/decrease) in the all-in-cost. (b) Changes in the currency of borrowing Designated AD Category-I banks may allow changes in the currency of borrowing of the ECB, if so desired, by the borrower company, subject to all other terms and conditions of the ECB remaining unchanged. Designated AD banks should, however, ensure that the proposed currency of borrowing is freely convertible. (c) Change of the AD bank Designated AD Category-I banks may allow change of the existing designated AD bank by the borrower company for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d AD Category I banks may approve reduction in the amount of ECB (irrespective of the number of occasions) with or without any changes in draw-down and repayment schedules, average maturity period and all-in-cost. (k) Change in all-in-cost of ECB The designated AD Category-I bank may approve requests from ECB borrowers for changes (decrease/increase) in all-in-cost of the ECBs irrespective of the number of occasions. Note: The aforesaid measures are subject to the designated AD Category-I bank ensuring that the revised average maturity period and or all-in-cost is/are in conformity with the applicable ceilings / guidelines and the changes are effected during the tenure of the ECB and the ECB continues to be in compliance with applicable guidelines. If the lender for such ECBs is an overseas branch / subsidiary of an Indian bank, the changes shall be subject to the applicable prudential norms. The changes in the terms and conditions of ECB and / or any other changes allowed by the AD Category-I banks under the powers delegated and / or changes approved by the Reserve Bank should be reported to the Department of Statistics and Information Management (DSIM) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The ab-initio contract period should be 6 (six) months for all trade credits. (iii) The period of trade credit should be linked to the operating cycle and trade transaction. AD Category I banks may ensure that these instructions are strictly complied with. b) All-in-cost Ceilings The existing all-in-cost ceilings are as under Maturity period All-in-cost ceilings over 6 months LIBOR* Up to one year 350 basis points More than one year and up to three years More than three years and up to five years * for the respective currency of credit or applicable benchmark * for the respective currency of credit or applicable benchmark The all-in-cost ceilings include arranger fee, upfront fee, management fee, handling/ processing charges, out of pocket and legal expenses, if any. c) Guarantee AD banks are permitted to issue Letters of Credit/Guarantees/Letter of Undertaking (LoU) /Letter of Comfort (LoC) in favour of overseas supplier, bank and financial institution, up to USD 20 million per transaction for a period up to one year fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... December 6, 2005 5 FEMA 157/2007-RB August 30, 2007 6 FEMA.194/2009-RB June 17, 2009 7 FEMA.197/2009-RB September 22, 2009 8 FEMA.232/2012-RB May 30, 2012 9 FEMA.245/2012-RB November 12, 2012 10 FEMA.246/2012-RB November 27, 2012 11 FEMA.250/2012-RB December 06, 2012 12 FEMA.256/2013-RB February 6, 2013 13 FEMA.270/2013-RB March 19, 2013 14 FEMA.281/2013-RB July 19, 2013 15 FEMA.286/2013-RB September 5, 2013 16 FEMA.288/2013-RB September 26, 2013 Amendment to FEMA 8/2000 RB dated May 3, 2000 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P.(DIR Series) Circular No.1 July 11, 2008 23 A.P.(DIR Series) Circular No.16 September 22, 2008 24 A.P.(DIR Series) Circular No.17 September 23, 2008 25 A.P.(DIR Series) Circular No.20 October 8, 2008 26 A.P.(DIR Series) Circular No.26 October 22, 2008 27 A.P.(DIR Series) Circular No.27 October 27, 2008 28 A.P.(DIR Series) Circular No.39 December 8, 2008 29 A.P.(DIR Series) Circular No.46 January 2, 2009 30 A.P.(DIR Series) Circular No.58 March 13, 2009 31 A.P.(DIR Series) Circular No.64 April 28, 2009 32 A.P.(DIR Series) Circular No.65 April 28, 2009 33 A.P.(DIR Series) Circular No.71 June 30, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nuary 05, 2012 57 A.P.(DIR Series) Circular No.69 January 25, 2012 58 A.P.(DIR Series) Circular No70 January 25, 2012 59 A.P.(DIR Series) Circular No.75 February 07, 2012 60 A.P.(DIR Series) Circular No.85 February 29, 2012 61 A.P.(DIR Series) Circular No.99 March 30, 2012 62 A.P.(DIR Series) Circular No.100 March 30, 2012 63 A.P.(DIR Series) Circular No.111 April 20, 2012 64 A.P.(DIR Series) Circular No.112 April 20, 2012 65 A.P.(DIR Series) Circular No.113 April 24, 2012 66 A.P.(DIR Series) Circular No.119 May 07, 2012 67 A.P.(DIR Series) Circular No.134 June 25, 2012 68 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A.P.(DIR Series) Circular No.117 June 25, 2013 92 A.P.(DIR Series) Circular No.119 June 26, 2013 93 A.P.(DIR Series) Circular No.120 June 26, 2013 94 A.P.(DIR Series) Circular No.6 July 8, 2013 95 A.P.(DIR Series) Circular No.9 July 11, 2013 96 A.P.(DIR Series) Circular No.10 July 11, 2013 97 A.P.(DIR Series) Circular No.11 July 11, 2013 98 A.P.(DIR Series) Circular No.12 July 15, 2013 99 A.P.(DIR Series) Circular No.31 September 04, 2013 100 A.P.(DIR Series) Circular No.48 September 18, 2013 101 A.P.(DIR Series) Circular No. 53 September 24, 2013 102 A.P.(DIR Series) Circular No. 56 Septem ..... X X X X Extracts X X X X X X X X Extracts X X X X
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