Trade Credits for Imports into India – Review of all-in-cost ceiling.

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..... invited to A.P. (DIR Series) Circular No. 44 dated November 15, 2011 relating to the all-in-cost ceiling of Trade Credits for imports into India. 2.Considering the developments in the global financial markets and the fact that domestic importers were experiencing difficulties in raising trade credit within the existing all-in-cost ceiling, the all-in-cost ceiling for trade credit was enhance .....

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..... ged. 4. AD Category - I banks may bring the contents of this circular to the notice of their constituents and customers. 5. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law. Yours faithfully, (Dr .....

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..... (ii) All-in-cost for Trade Credit Maturity Period All-in-cost over 6 month LIBOR* Up to one year 350 bps More than one year and up to three years The all-in-cost ceiling is applicable up to September 30, 2012, subject to review thereafter. Instructions have been issued vide A.P. (DIR Series) Circular Nos. 99 and 100 dated March 30, 2012 . .....

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