External Commercial Borrowings liberalisation introduces uniform all in cost ceiling, expanded eligible borrowers, and standardized negative end uses. External Commercial Borrowings policy is reformed to set a uniform all-in-cost ceiling tied to prescribed benchmark rates, raise the liability to equity ratio to 7:1 for ECBs from direct foreign equity holders under the automatic route (with a small value exception), expand eligible borrowers to include regulated Housing Finance Companies and Port Trusts (with 100% hedging for Track I) and permit certain INR denominated ECBs for MRO and freight forwarding companies, and to replace track specific positive/negative lists with a single negative end use list including prohibitions on real estate investment (subject to specified exceptions), capital market and equity investments, certain corporate uses for Tracks I and III unless raised from equity holders or group companies with minimum five year maturity, and on lending for prohibited activities.
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External Commercial Borrowings liberalisation introduces uniform all in cost ceiling, expanded eligible borrowers, and standardized negative end uses.
External Commercial Borrowings policy is reformed to set a uniform all-in-cost ceiling tied to prescribed benchmark rates, raise the liability to equity ratio to 7:1 for ECBs from direct foreign equity holders under the automatic route (with a small value exception), expand eligible borrowers to include regulated Housing Finance Companies and Port Trusts (with 100% hedging for Track I) and permit certain INR denominated ECBs for MRO and freight forwarding companies, and to replace track specific positive/negative lists with a single negative end use list including prohibitions on real estate investment (subject to specified exceptions), capital market and equity investments, certain corporate uses for Tracks I and III unless raised from equity holders or group companies with minimum five year maturity, and on lending for prohibited activities.
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