FEMA - External Commercial Borrowings (ECB)
THE ECB limit for eligible borrowers under the automatic route was enhanced to USD 750 Millions or equivalent per financial year per borrower for permissible end-uses under the automatic route vide A.P. (DIR Series) Circular No. 27 dated September 23, 2011. Consequent to the enhancement in limits, the revised average maturity guidelines under the automatic route are:-
a) ECB up to USD 20 million or equivalent in a financial year with minimum average maturity of three years; and
b) ECB above USD 20 million and up to USD 750 million or equivalent with minimum average maturity of five years.
Accordingly, the requirement of average maturity period, prepayment and call / put options specified vide A.P. (DIR Series) Circular No.17 dated December 4, 2006 (for additional amount of USD 250 million) has been dispensed with.
Necessary amendments to the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000 dated May 3, 2000 and Foreign Exchange Management (Transfer or Issue of any Foreign Security) (Amendment) Regulations, 2004 dated July 7, 2004 are being issued.
AP (DIR) Series Circular No. 64/RBI; Dated January 05 2012