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Presently, ECB limit for eligible borrowers under the Automatic Route, for permissible end-uses, is US $ 750 million or its equivalent
This Circular makes the following changes in ECB guidelines:
1. The revised average maturity guidelines under the Automatic Route are as follows:
(a) ECB up to US $ 20 million or equivalent in a financial year with minimum average maturity of three years; and
(b) ECB above US $ 20 million and up to US $ 750 million or equivalent with minimum average maturity of five years.
2. Requirement of average maturity period, prepayment and call/put options for additional amount of ECB of US $ 250 million [i.e., US $ 750 million minus US $ 500 million (earlier limit)] has been dispensed with.
3. Eligible borrowers under the Automatic Route can raise Foreign Currency Convertible Bonds (FCCB) up to US $ 750 million or equivalent per financial year for permissible end-uses.
4. Corporates in specified service sectors, viz. hotel, hospital and software, can raise FCCB up to US $ 200 million or equivalent for permissible end-uses during a financial year subject to the condition that the proceeds of the ECB should not be used for acquisition of land.
5. As a result of enhancement in the ECB limits under the Automatic Route, from US $ 500 million to US $ 750 million, ECB/FCCB availed of for the purpose of refinancing the existing outstanding FCCB will be reckoned as part of the limit of USD 750 million available under the Automatic Route.
