TaxTMI 
TaxTMI 
TaxTMI 
External Commercial Borrowings (ECB) Policy - Issuance of Rupee denominated bonds overseas
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....(AD Category - I) banks is invited to the provisions contained in A.P. (DIR Series) Circular No. 5 dated August 01, 2005 as amended from time to time on External Commercial Borrowings (ECB). 2. In order to facilitate Rupee denominated borrowing from overseas, it has been decided to put in place a framework for issuance of Rupee denominated bonds overseas within the overarching ECB policy. The bro....
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....submission of Form 83 where type of ECB is to be specifically mentioned as borrowing through issuance of Rupee denominated bonds overseas), parking of bond proceeds, security / guarantee for the borrowings, conversion into equity, corporates under investigation, etc., not appearing in the Annex will be applicable for borrowing by issuance of Rupee denominated bonds overseas. 5. AD Category-I bank....
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.... 2. Type of instrument Only plain vanilla bonds issued in a Financial Action Task Force (FATF) compliant financial centres; either placed privately or listed on exchanges as per host country regulations. 3. Recognised investors Any investor from a FATF compliant jurisdiction. Banks incorporated in India will not have access to these bonds in any manner whatsoever. Indian banks, however, can ....
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.... equity investment domestically; * Activities prohibited as per the foreign direct investment (FDI) guidelines; * On-lending to other entities for any of the above objectives; and * Purchase of land. 7. Amount Under the automatic route the amount will be equivalent of USD 750 million per annum. Cases beyond this limit will require prior approval of the Reserve Bank. 8. Conversion rate ....