Reserve Bank of India vide its circular bearing no A.P. (DIR Series) Circular No.31 dated 04.09.2013 has permitted eligible borrower to avail ECB under approval route from their foreign equity holder with minimum average maturity of 7 years for GENERAL CORPORATE PURPOSES (Under existing ECB guidelines, ECB borrowings cannot be utilized for general corporate purpose), subject to the following conditions:
- Minimum paid up equity of 25% shall be directly held by lender;
- The said ECB shall not be used for any purpose not permitted under the current ECB guidelines;
- Repayment of principle amount shall commence only after completion of minimum average maturity period of 7 years;
- No prepayment of principle will be allowed before maturity.