ECBs RELAXED
Foreign Institutional Invbestors (FIIs) can now buy up to $5 billion in corporate bonds. It has
been decided that entities like NHB, housing finance cos. will be included as eligible borrowers
for financing such low-cost housing projects. Refinancing of buyers' credit for import of capital
goods in infrastructure sector will be put on the automatic route subject to certain conditions. The
maturity for such credit has been increased to five years. The official said SIDBI will be allowed
to tap the ECB market for funding the MSME sector subject to some conditions to be finalised
by the Reserve Bank of India (RBI) shortly. The government also hiked the maximum limit
of funding rupee loans via ECBs to 75% of forex earnings recorded in the previous three years or
50% of the highest forex earnings recorded in one of the previous three years. Special purpose
vehicles will also allowed to avail this facility. Also, eligible non-resident entities will now be
allowed to credit enhances the issue of rupee bonds by all companies.
been decided that entities like NHB, housing finance cos. will be included as eligible borrowers
for financing such low-cost housing projects. Refinancing of buyers' credit for import of capital
goods in infrastructure sector will be put on the automatic route subject to certain conditions. The
maturity for such credit has been increased to five years. The official said SIDBI will be allowed
to tap the ECB market for funding the MSME sector subject to some conditions to be finalised
by the Reserve Bank of India (RBI) shortly. The government also hiked the maximum limit
of funding rupee loans via ECBs to 75% of forex earnings recorded in the previous three years or
50% of the highest forex earnings recorded in one of the previous three years. Special purpose
vehicles will also allowed to avail this facility. Also, eligible non-resident entities will now be
allowed to credit enhances the issue of rupee bonds by all companies.
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