External commercial borrowings in Indian rupees permitted via rupee swaps with authorised dealer banks, subject to route and cost conditions. Recognised non resident lenders may extend external commercial borrowings in Indian rupees provided the lender mobilises rupees through swaps with an Authorised Dealer Category I bank; the ECB contract complies with conditions applicable to the automatic or approval routes; and the all in cost is commensurate with prevailing market conditions. Hedging arrangements for rupee ECBs from non resident equity holders continue to be governed by existing provisions. Lenders may set up representative offices in India to execute such swaps.
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 in Indian rupees permitted via rupee swaps with authorised dealer banks, subject to route and cost conditions.
Recognised non resident lenders may extend external commercial borrowings in Indian rupees provided the lender mobilises rupees through swaps with an Authorised Dealer Category I bank; the ECB contract complies with conditions applicable to the automatic or approval routes; and the all in cost is commensurate with prevailing market conditions. Hedging arrangements for rupee ECBs from non resident equity holders continue to be governed by existing provisions. Lenders may set up representative offices in India to execute such swaps.
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