External Commercial Borrowing - clarification on Overseas Corporate Bodies (OCBs) as recognised lenders

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....cial Borrowing - clarification on Overseas Corporate Bodies (OCBs) as recognised lenders Attention of Authorised Dealer (AD) banks is invited to A. P. (DIR Series) Circular No.14 dated September 16, 2003, in terms of which Overseas Corporate Bodies (OCBs) were derecognised as an eligible 'class of investor' under various routes / schemes available under the extant Foreign Exchange Management Regu....

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....thereon shall accrue after it falls due for repayment." Despite this restriction, it is observed that borrowers have availed External Commercial Borrowing from OCBs post derecognition of the OCBs as investor class, on grounds that the OCBs are their foreign equity holders. 3. It is, therefore, reiterated that OCBs not being recognized as investors cannot be recognized lenders. 4. AD banks may br....