Security for External Commercial Borrowings

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....1 (A)(vii) and 1 (B) (vi) of Annex to A P (DIR Series) Circular No. 5 dated August 1, 2005 and A P (DIR Series) Circular No. 1 dated July 11, 2008 relating to creation of charge over securities for External Commercial Borrowings (ECB). 2. Under the extant ECB guidelines, the choice of security to be provided to the overseas lender / supplier for securing ECB is left to the borrower. With a view....

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....nd / or personal guarantee, and (iii) No objection certificate, wherever necessary, from the existing lenders in India has been obtained. 3. Once aforesaid stipulations are met, the AD Category-I bank may permit creation of charge on immovable assets, movable assets, financial securities and issue of corporate and / or personal guarantees, during the currency of the ECB with security co-termina....

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....der, whether the lender takes over the movable asset or otherwise, will be restricted to the outstanding claim against the ECB. Encumbered movable assets may also be taken out of the country. (c) Creation of Charge over Financial Securities • Pledge of shares of the borrowing company held by the promoters as well as in domestic associate companies of the borrower will be permitted.....

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....in accordance with the extant FDI/FII policy including provisions relating to sectoral cap and pricing as applicable read with the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000. (d) Issue of Corporate or Personal Guarantee • A copy of Board Resolution for the issue of corporate guarantee for the company issuing such....