Checklist for External Commercial Borrowings (FEMA)

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External Commercial Borrowings

Whether the transaction falls under Automatic Route ?
Does the foreign lender holds minimum paid up equity of 25% in case of ECB upto 5 million USD ?
Does the foreign lender holds minimum paid up equity of 25% and ECB Deby Equity ratio not exceeding 4:1,in case of ECB more than 5 million USD
Is the ECB from indirect equity holders?

Whether the ECB proceeds repatriated to India?


S.No.ParticularsObservationsCommentsRemarks
1Whether the transaction falls under Automatic RouteIf not, approval from RBI required
2Does the foreign lender holds minimum paid up equity of 25% in case of ECB upto 5 million USDAll outstanding ECB(s) including proposed ECB to be calculated
3Does the foreign lender holds minimum paid up equity of 25% and ECB Deby Equity ratio not exceeding 4:1,in case of ECB more than 5 million USDAll outstanding ECB(s) including proposed ECB to be calculated
4Is the ECB from indirect equity holdersIf yes, atleast 51% holding in the Indian Company required
4Whether the ECB proceeds repatriated to India
ACertain Condition for raising ECB
1Maximum Amount of ECB which can be raised by a corporate other than those in hotel, hospital and software sectors and corporates in miscellaneous service sector.upto USD 750 million or equivalent during a FY
2Corporates in Service Sector viz. hotels, hospital and software sector and miscellaneous service sector.upto USD 200 million or its equivalent in a FY for permissible end used
3NGOs engaged in micro finance activities and Micro Finance Institutionsupto 10 million USD
4NBFC(s)-Infrasructure Finance Companiesupto 75% of their owned funds, hedging 75% of their currency risk exposure
5NBFC(s)-Asset Finance Companiesupto 75% of their owned funds, max. of USD 200 million per FY, min maturity of 5 years, hedging full currency risk
6SIDBIupto USD 20 million
BDocuments required by Overseas Organisation/ Individual
a)Due Diligence Certificate from an overseas bankShould be adhering to the Financial Action Task Force Guidelines
b)Audited Statement of Accounts
c)Income Tax Returns
d)Signed Loan Agreement
B1Other Documents
a)NOC from bank for creation of charge
b)Loan Registartion number obtained from RBI
c)Copy of BR for issue of corporate guarantee from the company issuing such guarantee
d)Copy of form FC-GPRIn case of conversion of ECB into equity
e)Form ECB-2within 7 working days to the close of month to which it relates
h)Copy of Form 83For allotment of LRN
i)CTC(s) of the meetings for allotment of equity shares
j)Bank Details