Wednesday, July 15, 2009

ECB POLICY-AMENDED


  • External Commercial Borrowings (ECB) for Integrated Township

It has been decided to extend the permission up to December 31, 2009, under the Approval route.
  • ECB for NBFC sector
Non-Banking Finance Companies (NBFCs), which are exclusively involved in financing of the infrastructure sector, are permitted to avail of ECBs from multilateral / regional financial institutions and Government owned development financial institutions for on-lending to the borrowers in the infrastructure sector under the Approval route, subject, inter-alia, to the condition that the direct
lending portfolio of these lenders vis-à-vis their total ECB lending to NBFCs, at any point of time, should not be less than 3:1. It has now been decided to dispense with this condition with effect from July 1, 2009. The proposals will, however, continue to be examined by the Reserve Bank under the Approval route, as hitherto.
  • ECB for Development of SEZ
It has now been decided to allow Special Economic Zone (SEZ) developers also to avail of ECB under the Approval route for providing infrastructure facilities, as defined in the ECB policy, within the SEZ. However, ECB shall not be permissible for development of integrated township and commercial real estate within the SEZ.
  • Corporates under Investigation
Any request by corporates, which have violated the extant ECB policy and are under investigation by RBI for ECB will be examined under the Approval route

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