External Commercial Borrowings from foreign equity holders allowed for general corporate purposes subject to seven year maturity and conditions. ECB from foreign equity holders are permitted under the approval route for general corporate purposes with a minimum average maturity of seven years. Conditions: lender must directly hold at least 25% of paid up equity; proceeds cannot be applied to purposes prohibited by ECB guidelines, including on lending to group entities or step down subsidiaries in India; and principal repayment begins only after the seven year minimum average maturity with no prepayment before maturity. Other ECB provisions remain unchanged.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
External Commercial Borrowings from foreign equity holders allowed for general corporate purposes subject to seven year maturity and conditions.
ECB from foreign equity holders are permitted under the approval route for general corporate purposes with a minimum average maturity of seven years. Conditions: lender must directly hold at least 25% of paid up equity; proceeds cannot be applied to purposes prohibited by ECB guidelines, including on lending to group entities or step down subsidiaries in India; and principal repayment begins only after the seven year minimum average maturity with no prepayment before maturity. Other ECB provisions remain unchanged.
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