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ARTICLE · 27 NOVEMBER 2017

External Commercial Borrowing (ECB) Under Foreign Exchange Management Act (FEMA)

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External Commercial Borrowings are commercial loans raised by ‘eligible resident borrower' from ‘recognised non-resident entities' AND should confirm to parameters specified in ECB guidelines...

IndiaFinance and Banking
Malay Damania
Malay Damania

External Commercial Borrowings are commercial loans raised by 'eligible resident borrower' from 'recognised non-resident entities' AND should confirm to parameters specified in ECB guidelines such as minimum maturity period, permitted end-use of funds, maximum all-in-cost ceilings etc.

The framework for raising ECB is divided into following THREE Tracks:

TRACK 1 – Foreign currency denominated ECB with minimum average maturity period of 3/5 years

TRACK 2 - Foreign currency denominated ECB with minimum average maturity period of 10 years

TRACK 3 – Indian Rupee denominated ECB with minimum average maturity period of 3/5 years

In this paper, we will discuss the ECB raised under Track 1 hereunder:

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