RBI expands access to external commercial borrowings
after close1 source ↓written by the desknot a recommendation
The RBI has amended the Foreign Exchange Management Regulations, enhancing access to External Commercial Borrowings (ECBs). The changes allow a broader range of Indian entities, including those under restructuring, to raise ECBs, while ensuring compliance with new checks. This move may boost financing options for eligible firms, potentially impacting market liquidity.
• Expanded borrower base includes LLPs and entities under CIRP.
• Related party borrowings must comply with arm’s length principles.
The revised framework aims to facilitate greater flexibility in foreign borrowing.
Not investment advice. For informational purposes only.