Saturday, April 21, 2012

RAISING OF FRESH ECB TO LIQUIDATE THE EXISTING ECB -UNDER APPROVAL ROUTE NOW

Due to interest savings and to avail more finance , now , Indian companies are allwed to raise fresh ECB's to repay the existing ECBs.

As per the extant guidelines, existing ECB may be refinanced by raising a fresh ECB, subject to the condition that the fresh ECB is raised at a lower all-in-cost.

3. On a review, it has been decided that the borrowers desirous of refinancing/rescheduling an existing ECB can raise fresh ECB at a higher all-in-cost under the approval route subject to the condition that the enhanced all-in-cost does not exceed the all-in-cost ceiling prescribed as per the extant guidelines.

Reference RBI Circular RBI/2011-12/520 ----A. P. (DIR Series) Circular No. 112

For any clarification or further information please contact rvsekar2007@gmail.com or 098489115177

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