ECB from share holder

[Anil Kumar]

We want to take loan from NRI share holder .what is the procedure and without RBI approval .

1) Will we take money from NRI share holder before approval of RBI.

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above issue? If not please inform.

[Ganeshan Kalyani]

Sir, the concern of Sri Mariappan Sir is valid but sufficent time elapsed. His reply to this query would be learning for the rest of onlookers, but definitely the querist would have got his query resolved. Thanks.

[DR.MARIAPPAN GOVINDARAJAN]

NRI shareholder can give loan to the company under ECB route for which RBI compliances in respect of ECB should be followed.

AI Summary

External commercial borrowings require central bank compliance when sourced from NRI shareholders, shaping loan acceptance procedures. An NRI shareholder may provide a loan to the company only under the External Commercial Borrowing (ECB) route, and acceptance of such funds is subject to the ECB compliance framework and corresponding central bank regulatory compliances that must be observed.