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TMI BlogBorrowings from outside India by a person resident in India [See Regulations 4(A)(iv), 4(B)(i), 4(B)(iv), 6(A), 6(B)(i), 6(B)(vii)]X X X X Extracts X X X X X X X X Extracts X X X X ..... rnment of India. 2. Forms ECB can be raised in the forms as prescribed by the Reserve Bank in consultation with the Government of India. Certain hybrid instruments, such as optionally convertible debentures, presently covered under ECB, would be governed by specific hybrid instruments Regulations when notified by the Government of India. 3. Eligibility of borrowers All entities eligible to receive foreign direct investment, in terms of Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2017 , notified vide Notification No. FEMA 20(R)/ 2017-RB dated November 07, 2017 , as amended from time to time, including Start-ups. Further, Reserve Bank, in consultation with the Government of India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consultation with the Government of India. 7. End-uses The proceeds of borrowing raised from outside India in terms of this Schedule can be used for all purposes except for those activities prescribed in the negative end-use list by the Reserve Bank in consultation with the Government of India. 8. Individual Limits of borrowing All eligible borrowers/category of borrowers may raise ECB of up to USD 750 million or equivalent per financial year. For Startups the amount would be limited to USD 3 million or equivalent per financial year. However, Reserve Bank, in consultation with Government of India may prescribe higher limits for ECBs raised by entities in certain sectors or for certain end uses. The said individual limits may be subject to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lty as specified by the Reserve Bank from time to time. Provided that non-payment of penalty as above shall be treated as a contravention and shall be subject to compounding or adjudication as provided in the Act or Rules framed thereunder. 12. Reporting The borrower shall adhere to the reporting procedure as specified by the Reserve Bank from time to time. For nonadherence, the borrower may be required to pay penalty as specified by the Reserve Bank from time to time. Provided that non-payment of penalty as above shall be treated as a contravention and shall be subject to compounding or adjudication as provided in the Act or Rules framed thereunder. 13. Debt Servicing The designated AD shall have the general permission to make remittances ..... X X X X Extracts X X X X X X X X Extracts X X X X
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