Whether the transaction falls under Automatic Route ?
Does the foreign lender holds minimum paid up equity of 25% in case of ECB upto 5 million USD ?
Does the foreign lender holds minimum paid up equity of 25% and ECB Deby Equity ratio not exceeding 4:1,in case of ECB more than 5 million USD
Is the ECB from indirect equity holders?
Whether the ECB proceeds repatriated to India?
| S.No. | Particulars | Observations | Comments | Remarks |
|---|---|---|---|---|
| 1 | Whether the transaction falls under Automatic Route | If not, approval from RBI required | ||
| 2 | Does the foreign lender holds minimum paid up equity of 25% in case of ECB upto 5 million USD | All outstanding ECB(s) including proposed ECB to be calculated | ||
| 3 | Does the foreign lender holds minimum paid up equity of 25% and ECB Deby Equity ratio not exceeding 4:1,in case of ECB more than 5 million USD | All outstanding ECB(s) including proposed ECB to be calculated | ||
| 4 | Is the ECB from indirect equity holders | If yes, atleast 51% holding in the Indian Company required | ||
| 4 | Whether the ECB proceeds repatriated to India | |||
| A | Certain Condition for raising ECB | |||
| 1 | Maximum Amount of ECB which can be raised by a corporate other than those in hotel, hospital and software sectors and corporates in miscellaneous service sector. | upto USD 750 million or equivalent during a FY | ||
| 2 | Corporates in Service Sector viz. hotels, hospital and software sector and miscellaneous service sector. | upto USD 200 million or its equivalent in a FY for permissible end used | ||
| 3 | NGOs engaged in micro finance activities and Micro Finance Institutions | upto 10 million USD | ||
| 4 | NBFC(s)-Infrasructure Finance Companies | upto 75% of their owned funds, hedging 75% of their currency risk exposure | ||
| 5 | NBFC(s)-Asset Finance Companies | upto 75% of their owned funds, max. of USD 200 million per FY, min maturity of 5 years, hedging full currency risk | ||
| 6 | SIDBI | upto USD 20 million | ||
| B | Documents required by Overseas Organisation/ Individual | |||
| a) | Due Diligence Certificate from an overseas bank | Should be adhering to the Financial Action Task Force Guidelines | ||
| b) | Audited Statement of Accounts | |||
| c) | Income Tax Returns | |||
| d) | Signed Loan Agreement | |||
| B1 | Other Documents | |||
| a) | NOC from bank for creation of charge | |||
| b) | Loan Registartion number obtained from RBI | |||
| c) | Copy of BR for issue of corporate guarantee from the company issuing such guarantee | |||
| d) | Copy of form FC-GPR | In case of conversion of ECB into equity | ||
| e) | Form ECB-2 | within 7 working days to the close of month to which it relates | ||
| h) | Copy of Form 83 | For allotment of LRN | ||
| i) | CTC(s) of the meetings for allotment of equity shares | |||
| j) | Bank Details |
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