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Part C:
FEMA
Given below are the highlights of certain RBI
circulars, press notes and notifications
30 A. P. (DIR Series) Circular No. 19, dated
December 9, 2009
External Commercial Borrowings (ECB) Policy
This circular has carried out the following changes
to some aspects of the ECB Policy: –
1.
All-in-cost ceilings
All-in-cost ceilings, applicable with effect from
January 1, 2010 under the approval route, will be as under: –
2.
Integrated township
Presently, companies engaged in the development of
integrated townships are permitted to avail ECB under the approval route only up
to December 31, 2009. This facility for availing ECB under the approval route is
being extended up to December 31, 2010.
3.
Buyback of Foreign Currency Convertible Bonds (FCCBs)
Presently, Indian companies are allowed to buy-back
their FCCB both under the automatic route as well as the approval route. This
facility will be available only up to December 31, 2009 and will be discontinued
on and from January 1, 2010.
4.
ECB for NBFC Sector
Presently, NBFCs, exclusively engaged in the
financing of infrastructure sector, are permitted to avail of ECB under the
approval route only from multilateral / regional financial institutions and
government-owned development financial institutions for on-lending to borrowers
in the infrastructure sector. These NBFCs have, with immediate effect, been
permitted to avail of ECB from any recognized lender under the approval route.
5.
ECB for Spectrum in the Telecommunication Sector
Eligible borrowers in the telecommunications sector
are now permitted to avail of ECB for the purpose of payment for ‘Spectrum’
allocation’.
