Pledge of shares allowed to secure external commercial borrowings subject to authorised dealer no-objection and RBI conditions. Pledge of shares by promoters to secure external commercial borrowings is allowed subject to an authorised dealer's no-objection after verifying ECB compliance, a signed loan agreement, a security clause requiring creation of charge on financial securities, and a Loan Registration Number; the pledge must be co-terminus with ECB maturity, transfers on invocation must follow FDI policy and Reserve Bank directions, and the statutory auditor must certify permitted use of proceeds. Non-resident investors may pledge shares, convertible debentures, or investment vehicle units to secure credit facilities, subject to authorised dealer satisfaction of Reserve Bank conditions.