All posts by Arnav Mehra - 5. page

Professional Tax Consultant and Article Writer

FCCB AND ORDINARY SHARES (THROUGH DEPOSITORY RECEIPT MECHANISM)SCHEME, 1993 : DEFINITIONS Domestic Custodian Bank It means a banking company which acts as a custodian for the ordinary shares or Foreign […]

EXTERNAL COMMERCIAL BORROWINGS (ECB) : ECBs are commercial loans raised by eligible resident entities from recognised non-resident entities and should conform to parameters such as minimum maturity, permitted and non-permitted […]

Hedging requirement : Eligible Borrowers shall have a board approved risk management policy and shall keep their ECB exposure hedged 100% at all times. Further, the designated AD Category-I bank shall […]

Currency of Borrowing : • ECB can be raised in any freely convertible currency as well as in INR. • For INR-denominated ECB, lenders (other than foreign equity holders) are […]

Debt Equity Ratio : The borrowing entities will be governed by the guidelines on debt equity ratio issued, if any, by the sectoral or prudential regulator concerned.

FORMS OF ECB : The ECB Framework enables permitted resident entities to borrow from recognized non-resident entities in the following forms: 1. Loans including bank loans; 2. Securitized instruments (e.g. […]

Change of designated AD bank : Change of designated AD Bank is permitted, subject to NOC from existing AD bank (without any requirement of undertaking any due diligence).

Other Key Features : Individual Units   Sector Route   Automatic Approval Infrastructure and manufacturing NBFC–IFCs, NBFCs–AFCs, Holding Companies and Core Investment Companies Upto USD 750 million USD 750 million […]

Benefits to Investors : • It has advantage of both equity and debt. • It gives the investor much of the upside of investment in equity, and the debt portion […]

FOREIGN CURRENCY CONVERTIBLE BONDS : The FCCBs are unsecured, carry a fixed rate of interest and an option for conversion into a fixed number of equity shares of the issuer […]