External Commercial Borrowings rules: automatic and approval routes define eligibility, permitted end uses, security and reporting requirements. The Master Circular prescribes that ECBs, FCCBs, FCEBs and Trade Credits are governed under FEMA/RBI rules and may be raised via the Automatic Route (eligible corporates, NBFCs, MFIs, NGOs, SEZ units from recognised lenders subject to amount, maturity, all in cost and end use limits) or the Approval Route (for proposals outside automatic limits or by specified entities). It defines recognised lenders and eligible end uses (capital investment, infrastructure, specified services, overseas JV/WOS, IDC), prohibits certain end uses (capital market investment, real estate, general corporate purpose save exceptions), sets all in cost ceilings, security/guarantee rules, parking of proceeds, prepayment/refinance conditions, reporting (LRN, Form 83/ECB 2) and delegates procedural powers to AD Category I banks.
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 rules: automatic and approval routes define eligibility, permitted end uses, security and reporting requirements.
The Master Circular prescribes that ECBs, FCCBs, FCEBs and Trade Credits are governed under FEMA/RBI rules and may be raised via the Automatic Route (eligible corporates, NBFCs, MFIs, NGOs, SEZ units from recognised lenders subject to amount, maturity, all in cost and end use limits) or the Approval Route (for proposals outside automatic limits or by specified entities). It defines recognised lenders and eligible end uses (capital investment, infrastructure, specified services, overseas JV/WOS, IDC), prohibits certain end uses (capital market investment, real estate, general corporate purpose save exceptions), sets all in cost ceilings, security/guarantee rules, parking of proceeds, prepayment/refinance conditions, reporting (LRN, Form 83/ECB 2) and delegates procedural powers to AD Category I banks.
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