External Commercial Borrowings (ECB) – Revised Policy Framework
Global Tax Update:January 2016/India
In consultation with the Government of India, the Reserve Bank of India on 30 November 2015 has prescribed a revised ECB policy framework.This newsletter explains the essential changes. (Global Tax Update:January 2016/India)
Key highlights of the major parameters governing ECB policy
- Nature of ECB and Minimum Average Maturity (MAM)
- Eligible Borrowers – Who can borrow under each of the tracks?
- Recognized Lenders / Investors - Who can lend under each of the tracks?
- All-in-cost ceiling (Penal interest for default or breach of covenants < 2% over and above the contracted rate of interest.)
- Permitted End-uses
- Individual Limits
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