ECB from Foreign Equity Holder - Liberalised

It has been decided to delegate powers to Authorised Dealer (AD) banks to approve the following cases under the automatic route:

• Proposals for raising External Commercial Borrowings (ECB) by companies belonging to manufacturing, infrastructure, hotels, hospitals and software sectors from indirect equity holders and group companies.
• Proposals for raising ECB for companies in miscellaneous services from direct / indirect equity holders and group companies. Miscellaneous services mean companies engaged in training activities (but not educational institutes), research and development activities and companies supporting infrastructure sector.
• Proposals for raising ECB by companies belonging to manufacturing, infrastructure, hotels, hospitals & software sectors for general corporate purpose.
• Proposals involving change of lender when the ECB is from Foreign Equity Holders- direct /indirect equity holders and group company.