External Commercial Borrowings and Trade Credits: rules on eligibility, routes, costs, end use and reporting requirements. The Master Circular prescribes that ECBs and Trade Credits may be raised only by eligible borrowers from recognised lenders under either an Automatic Route (for specified real sector, infrastructure and certain service sectors within prescribed annual limits, maturities and all in cost ceilings) or an Approval Route (for proposals outside those parameters), with detailed end use restrictions, security and guarantee conditions, parking of proceeds, prepayment and refinancing rules, and mandatory reporting (LRN, Form 83, ECB 2 and trade credit returns).
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 and Trade Credits: rules on eligibility, routes, costs, end use and reporting requirements.
The Master Circular prescribes that ECBs and Trade Credits may be raised only by eligible borrowers from recognised lenders under either an Automatic Route (for specified real sector, infrastructure and certain service sectors within prescribed annual limits, maturities and all in cost ceilings) or an Approval Route (for proposals outside those parameters), with detailed end use restrictions, security and guarantee conditions, parking of proceeds, prepayment and refinancing rules, and mandatory reporting (LRN, Form 83, ECB 2 and trade credit returns).
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