Capital Market - 4. page

Dissemination of ECB Information : ECB details such as name of the borrower, amount, purpose and maturity under automatic/ approval routes would be put up on RBI’s website on a monthly […]

Security for raising ECB : AD Category I banks are permitted to allow creation of charge on immovable assets, movable assets, financial securities and issue of corporate and/ or personal guarantees […]

Reporting Requirements : Borrowings under ECB Framework are subject to reporting requirements in respect of the following: (i) Loan Registration Number (LRN): Any draw-down in respect of an ECB as […]

Transitional Provisions The new framework will : come into force from the date of publication in the Official Gazette, of the relative regulations issued under FEMA. The same will be reviewed […]

Introduction  of Indian Depository Receipts : The world has became global village due to the technology advancement and as a result the Securities Market have become international. Companies that previously […]

Process involved in issue of India Depository Receipts (IDRs) : The following flow chart describes the IDRs process :

ADVANTAGES OF THE IDR : Benefits to the Issuing Company • It provides access to a large pool of capital to the issuing company. • It gives brand recognition in […]

Prepayment of ECB : Pre-payment is permitted without any restriction on amount subject to compliance with stipulated minimum average maturity.  

Part refinancing of existing ECB : Raising fresh ECB for part refinance is permissible provided that: (1) there is no reduction in residual maturity of the ECB and (2) fresh […]

Parking of Proceeds : (i) Parking of ECB proceeds abroad: ECB proceeds meant only for foreign currency expenditure can be parked abroad pending utilization . Till utilisation, these funds can be […]