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TMI BlogExternal Commercial Borrowings (ECB) Policy – Rationalisation and LiberalisationX X X X Extracts X X X X X X X X Extracts X X X X ..... nvited to Master Direction No.5 dated January 1, 2016 on External Commercial Borrowings, Trade Credit, Borrowing and Lending in Foreign Currency by Authorised Dealers and Persons other than Authorised Dealers, as amended from time to time. 2. Corporates and other entities planning to avail ECB to meet their capital needs have been approaching RBI for relaxations in the existing ECB framework. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iability to Equity Ratio provisions: It has been decided to increase the ECB Liability to Equity Ratio for ECB raised from direct foreign equity holder under the automatic route to 7:1. This ratio will not be applicable if total of all ECBs raised by an entity is up to USD 5 million or equivalent. (iii) Expansion of Eligible Borrowers' list for the purpose of ECB: It has been decided to permit: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se list is prescribed for Track I and specified category of borrowers, while negative end-use list is prescribed for Track II and III. It has now been decided to have only a negative list for all tracks. The negative list for all Tracks would include the following: * Investment in real estate or purchase of land except when used for affordable housing as defined in Harmonised Master List of Infr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e notice of their constituents and customers. 4. The aforesaid Master Direction No. 5 dated January 01, 2016 is being updated to reflect the changes. 5. The directions contained in this circular have been issued under section 10(4) and 11(2) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law. Yours ..... X X X X Extracts X X X X X X X X Extracts X X X X
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