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      FEMA - FAQ

      Home› Manuals List › FEMA › FEMA - FAQ › External Commercial Borrowings (ECB) and Trade Credits - As on Jun 26, 2023 › This
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      Can the interest accrued on ECB be converted into Equity under the extant norms?

      External Commercial Borrowings (ECB) and Trade Credits - As on Jun 26, 2023

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      Conversion of interest on external commercial borrowings into equity permitted subject to applicable regulatory conditions.
      Extant FEMA norms permit conversion of both ECB principal and interest into equity subject to the regulatory conditions and procedural requirements set ... Summary

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