Author - Archana Balasubramanian
Doing business in India received a swirl of positive facilitation in terms of legal and regulatory reforms in 2019. The Reserve Bank of India (“RBI”) too exercised reforms by liberalising the policy on External Commercial Borrowings (“ECBs”).
The RBI, exercising its power under Section 6 of the Foreign Exchange Management Act, 1999, regulated ECBs which are commercial loans raised by eligible resident entities from recognised non-resident entities and should conform to parameters such as minimum maturity, permitted and non-permitted end-uses, maximum all-in-cost ceiling, etc. Under A.P. (DIR Series) Circular 04 of RBI dated 30thJuly 2019 (“ECB Circular”), the end-use provisions have been amended. « Continue Reading »