RBI relaxes norms for ECBs

As per RBIs new relaxations to External Commercial Borrowings (ECB) norms, corporates would be able to access ECBs for raising funds from companies which are under investigation by assorted law-enforcing authorities. Currently, such companies are not allowed to access ECB under the automatic route. Any request by such corporates for ECB was usually examined by the RBI under the approval route.
But from now on, all entities will be permitted to access ECBs under the automatic route, notwithstanding the pending investigations /adjudications / appeals by the law enforcing agencies, without prejudice to the outcome of such investigations / adjudications / appeals.

Month: Current Affairs - March, 2013