TMI BlogExternal Commercial Borrowings (ECB) Policy - Structured ObligationsX X X X Extracts X X X X X X X X Extracts X X X X ..... z. Payment to person resident outside India on invocation of guarantee, A.P. (DIR Series) Circular No. 28 dated March 30, 2001 and A.P. (DIR Series) Circular No. 5 dated August 1, 2005 relating to External Commercial Borrowings (ECB). 2. Borrowing and lending of Indian Rupees between two persons resident in India does not attract the provisions of the Foreign Exchange Management Act, 1999. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s have been reviewed and it has been decided to put in place a comprehensive policy framework on credit enhancement to domestic debt as indicated below: 4. It has since been decided that the facility of credit enhancement by eligible non-resident entities may be extended to domestic debt raised through issue of capital market instruments, such as debentures and bonds, by Indian companies engage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be restricted to a maximum 2 per cent of the principal amount involved; v) on invocation of the credit enhancement, if the guarantor meets the liability and if the same is permissible to be repaid in foreign currency to the eligible non-resident entity, the all-in-cost ceilings, as applicable to the relevant maturity period of the Trade Credit / ECBs, would apply to the novated loan. Presently ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld comply with the eligibility criteria and prudential norms laid down in the circular DNBS.PD.CC No.168 / 03.02.089 / 2009-10 dated February 12, 2010 and in case the novated loan is designated in foreign currency, the IFC should hedge the entire foreign currency exposure; and viii) The reporting arrangements as applicable to the ECBs would be applicable to the novated loans. 5. Necessary am ..... X X X X Extracts X X X X X X X X Extracts X X X X
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