Capital Market - 5. page

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. […]

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 […]

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 […]

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 […]

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.

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).

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 […]

End-uses not permitted : The promoter group company receiving such investments will not be permitted to utilise the proceeds for investments in the capital market or in real estate in […]

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 […]