ECB or External Commercial Borrowings are the types of borrowing taken by the entity registered in India from a foreign entity for commercial purposes. It is a prevalent and prominent method to bring investment or loans under the provisions and norms established by the Reserve Bank of India.
ECBs are governed and regulated by the RBI, Trade Credits and Structured Obligations and under the provisions of the Foreign Exchange Management Act, (FEMA).
External Commercial Borrowings are the type of loans raised by the entities registered in India from the non-residential Indian entities or from the companies that are registered abroad. ECBs should follow certain parameters based on Minimum Average Maturity Period, permitted and non-permitted end dues and maximum all-in-cost ceiling etc.
External Commercial Borrowings Application or ECB Application can be registered online. All ECBs can be raised through automatic mode if they confirm the following criteria mentioned below:
For more detailed information regarding this and for best legal services, visit bestlegalservices.in