TMI BlogRegulation 6(1) - Borrowings in Foreign Exchange under the Automatic RouteX X X X Extracts X X X X X X X X Extracts X X X X ..... investigations/adjudications/appeals, while availing foreign currency borrowing. ]] 11 [(b) Non Government Organisations and Micro Finance Institutions engaged in micro-finance activities may borrow in foreign exchange under this Schedule under such terms and conditions as specified by the Reserve Bank from time to time : 16 [ provided in case the entity is under investigation/ adjudications/appeals by the law enforcing agencies, for violation of any of the provision of the regulations under the Act, it shall indicate to the Authorized Dealers (ADs) about pendency of investigations/adjudications/appeals, while availing foreign currency borrowing. ] ] (c) Any other entity as specified by the Reserve Bank. 17 [ provided in case the entity is under investigation/ adjudications/appeals by the law enforcing agencies, for violation of any of the provision of the regulations under the Act, it shall indicate to the Authorized Dealers (ADs) about pendency of investigations/adjudications/appeals, while availing foreign currency borrowing. ] ] ( ii) Amount 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vide broadband / internet) and (iii) telecommunication towers; (c) Transport which will include (i) railways (railway track, tunnel, viaduct, bridges and includes supporting terminal infrastructure such as loading / unloading terminals, stations and buildings), (ii) roads and bridges, (iii) ports, (iv) inland waterways, (v) airport and (vi) urban public transport (except rolling stock in case of urban road transport); (d) Water and sanitation which will include (i) water supply pipelines, (ii) solid waste management, (iii) water treatment plants, (iv) sewage projects (sewage collection, treatment and disposal system), (v) irrigation (dams, channels, embankments, etc.) and (vi) storm water drainage system; (e) (i) mining, (ii) exploration and (iii) refining; (f) Social and commercial infrastructure which will include (i) hospitals (capital stock and includes medical colleges and para medical training institutes), (ii) Hotel Sector which will include hotels with fixed capital investment of ₹ 200 crore and above, convention centres with fixed capital investment of ₹ 300 core and abo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o US$ 20 Million can have call/put option provided the minimum average maturity of 3 years as prescribed above is complied with before exercising call/put option. ] ( vi) All-in-cost ceilings The all-in-cost ceilings for the borrowing in foreign exchange shall be specified by the Reserve Bank from time to time (vii) Security The borrower shall be at liberty to provide security to the lender / suppliers, provided that- a) Where the security is in form of immovable property in India or shares of a company in India, it shall be subject to Regulation 8 of Notification No.FEMA.21/ 2000-RB dated May 3, 2000 and Regulation 3 of Notification No.FEMA.20/2000-RB dated May 3, 2000, respectively. b) Guarantee Banks, financial institutions and Non-Banking Finance Companies shall not provide (issue) guarantee or Letter of Comfort or Standby Letter of Credit in favour of overseas lender on behalf of their constituents for their borrowings in foreign exchange. (viii) Prepayment Notwithstanding the provisions of clause (v) above, prepayment of outstanding foreign currency loan may be made as per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n this regard. (ii) Provisions of sub-paragraph (v) of paragraph 1 shall not apply to the foreign currency borrowing in the nature of bridge finance made under para 3(i). (iii) The restriction of repayment of Rupee loans as specified in clause (B) in sub-paragraph (iv) of paragraph 1 shall not apply to the foreign currency borrowing availed of for refinancing domestic borrowings for making upfront payment towards spectrum allocation. (iv) Such foreign currency borrowings can also be availed of from the ultimate parent company subject to satisfying the terms and conditions as may be specified by the Reserve Bank, from time to time in this regard. ] 19 [ 4. Provided that under these Regulations, the Reserve Bank may, in consultation with the Government of India, prescribe for the automatic route, any provision or proviso regarding various parameters listed in paragraphs 1 to 3 above of this Schedule or any other parameter as prescribed by the Reserve Bank and also prescribe the date from which any or all of the existing proviso will cease to exist, in respect of borrowings from overseas, whether in foreign currency or Indian Rupe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... age projects) 7. Substituted vide notification no. 194/2009 dated 17/6/2009 with effect from 22nd day of October, 2008, before it was read as ix) Parking of loan amount abroad The proceeds of borrowings in foreign exchange shall be parked abroad until actual requirement in India. 8. Inserted vide notification no. 197/2009-RB dated 22-9-2009 9. Inserted vide notification no. 197/2009-RB dated 22-9-2009 10. Inserted vide notification no. 197/2009-RB dated 22-9-2009 11. Substituted vide Notification [No. FEMA 232/2012-RB], Dated 30-05-2012 , with effect from 19th day of December 2011, before it was read as:- (b) Non-Government Organisations engaged in micro-finance activities may borrow in foreign exchange under this Schedule under such terms and conditions as specified by the Reserve Bank from time to time. 9 [Provided that they have not at any time violated any of the provisions of these regulations and no investigation is pending against them for contravention of the provisions of these regulations under the Act. ] 12. Substituted vide Notification [No. FEMA 232/2012-RB], Dated 30-05-2012 , with effect from 19th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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