Background
In recent times, the value of the Indian rupee has seen massive
depreciation as a result of rising crude oil prices and the current
geopolitical situation. Taking into account the liquidity
conditions in the foreign exchange market, the Reserve Bank of
India (“RBI”) in its press release
dated June 6, 2022, has introduced certain measures to alleviate
volatility concerns and expand sources of foreign funding,
resulting in increased inflows.
External Commercial Borrowings (“ECBs”)
ECBs form a major component of India's overall
cross-border capital flows and are usually drawn by eligible
resident entities from recognised non-resident entities in the form
of various permitted instruments. Under the current ECB framework,
all eligible borrowers can usually raise ECB up to USD 750 million
each financial year under the automatic route, are now permitted to
raise up to US$ 1.5 billion. To enable Indian investment grade
companies to raise money in light of a
