EXTERNAL COMMERCIAL BORROWINGS (ECB)

Indian companies are allowed to access funds from abroad in the following methods:

(i) External Commercial Borrowings (ECB) :
  • ECBs refer to commercial loans in the form of bank loans, securitized instruments (e.g. floating rate notes and fixed rate bonds, non-convertible, optionally convertible or partially convertible preference shares), buyers’ credit, suppliers’ credit availed of from non-resident lenders with a minimum average maturity of 3 years.
(ii) Foreign Currency Convertible Bonds (FCCBs) :

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