Corporate Updates – 27-01-2015

RBI

1. RBI in view of the changes in the definition / classification of the exporters as per the Foreign Trade Policy of the Ministry of Commerce and Industry, it has been decided to review the policy framework for Overseas Direct Investments (ODI) by a proprietorship concern / unregistered partnership firm in India. Accordingly, the revised terms and conditions are required to be complied with for considering the proposal of ODI, by a proprietorship concern / unregistered partnership firm in India, by the Reserve Bank under the approval route. The proprietorship concern / unregistered partnership firm in India is classified as ‘Status Holder’ shall have a proven track record and is not under the adverse notice of any Government agency.

2. RBI on a review, as a measure of simplification of the existing procedure for rescheduling /restructuring of ECBs and in supersession of aforesaid provisions, it has been decided to delegate powers to the designated AD Category-I banks to allow, Changes / modifications (irrespective of the number of occasions) in the draw-down and repayment schedules of the ECB whether associated with change in the average maturity period or not and / or with changes (increase/decrease) in the all-in-cost, Reduction in the amount of ECB (irrespective of the number of occasions) along with any changes in draw-down and repayment schedules, average maturity period and all-in-cost and to Increase in all-in-cost of ECB, irrespective of the number of occasions. If the lender is an overseas branch / subsidiary of an Indian bank, the changes shall be subject to the applicable prudential norms.

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