Cos undergoing probe allowed to tap ECBs via automatic route
Quotes

Cos undergoing probe allowed to tap ECBs via automatic route

Last Updated: Wednesday, March 06, 2013, 14:35
 
 Comment 0
 
Cos undergoing probe allowed to tap ECBs via automatic route
Mumbai: The Reserve Bank has allowed corporates facing investigation from any law enforcement agency to raise funds through external commercial borrowings (ECBs) under the automatic route.

"...It has been decided to permit all entities to avail of ECBs under the automatic route as per the current norms, notwithstanding the pending investigations/adjudications/ appeals by the law enforcing agencies, without prejudice to the outcome of such investigations/adjudications/appeals," RBI said in a notification.

It further said, banks while approving such proposal of an applicant who has indicated about the pending investigation should intimate the concerned investigating agency by endorsing copy of the approval letter.

"The same procedure will be followed by the Reserve Bank of India also while approving such proposals," it said.

As per earlier guidelines, corporates under investigation by any law enforcing agencies like Directorate of Enforcement (DoE) etc were not allowed to access ECB under the Automatic route.

"All other aspects of the ECB policy, under the Automatic route such as amount of ECB, eligible borrower, recognised lender, end-use, all-in-cost ceiling, average maturity period, prepayment, refinancing of existing ECB and reporting arrangements remain unchanged," RBI said.

PTI



First Published: Wednesday, March 06, 2013, 14:31


Comments


comments powered by Disqus
Honda Mobilio MPV
Honda Mobilio MPV
BRICS Annual Summit 2014
BRICS Annual Summit 2014
Tata Zest Standout Features: In Pics
Tata Zest Standout Features: In Pics
New car launches in July
New car launches in July
Tata Zest first drive review: In pics
Tata Zest first drive review: In pics

Web Wrap
Contact Us : Privacy Policy : Legal Disclaimer
Copyright © Zee Media Corporation Ltd. All rights reserved