External Commercial Borrowings (ECB) by Startups

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..... ade by the Reserve Bank in the Fourth Bi-monthly Monetary Policy Statement for the year 2016-17 released on October 04, 2016, for permitting Startup enterprises to access loans under ECB framework. 2. Parameters for considering an entity as a Startup have since been published in the Official Gazette on February 18, 2016 by the Government of India. It is therefore decided, in consultation with .....

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..... es or has not committed to an action plan developed with the Financial Action Task Force to address the deficiencies Exclusion : Overseas branches/subsidiaries of Indian banks and overseas wholly owned subsidiary / joint venture of an Indian company will, however, not be considered as recognized lenders under this framework. d. Forms: The borrowing can be in the form of loans or non-c .....

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..... orrower. i. Conversion into equity: Conversion into equity is freely permitted, subject to Regulations applicable for foreign investment in Startups. j. Security: The choice of security to be provided to the lender is left to the borrowing entity. Security can be in the nature of movable, immovable, intangible assets (including patents, intellectual property rights), financial securities .....

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..... mestic market through branches/ subsidiaries of Indian banks abroad or branches of foreign bank with Indian presence on a back to back basis. m. Conversion rate: In case of borrowing in INR, the foreign currency - INR conversion will be at the market rate as on the date of agreement. 3. Other provisions like parking of ECB proceeds, reporting arrangements, powers delegated to AD banks, bor .....

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..... ions contained in this circular has been issued under section 10(4) and 11(2) 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 (A.K. Pandey) Chief General Manager - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India .....

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