Reserve Bank of India Ease Rules For Overseas Funding
In an attempt to facilitate access of overseas fund without any hassel, Reserve Bank of India (RBI) liberalized External Commercial Borrowings Policy by adding more sectors in the window. In a late night notification that released yesterday.
It has been decided to increase the ECB Liability to Equity Ratio for ECB raised from direct foreign equity holder under the automatic route to 7:1. This ratio will not be applicable if a total of all ECBs raised by an entity is up to USD 5 million or equivalent.
A uniform all-in-cost ceiling of 450 basis points over the benchmark rate will be stipulated to harmonize the provisions of Foreign Currency and Rupee ECBs and Rupee Denominated Bonds.
Moreover, Housing Finance Companies and port trust are eligible to avail ECB's under all tracks, provide...