Corpsec Hotline
February 24, 2004
External Commercial Borrowings (ECB) for Overseas Direct Investment/Mergers and Acquisitions

In continuance of the liberalization trend set by the Reserve Bank of India (RBI) and the Government, the RBI has liberalized the ECB norms once again, in order to facilitate Indian Companies to borrow monies for the acquisition of companies outside India.

Circular No. 75 issued by the RBI, will enable the Indian companies to become global players by facilitating their overseas direct investment. This is envisaged to be done by broadening the permitted end-use for ECB to include overseas direct investment in Joint Ventures (JV) / Wholly Owned Subsidiaries (WOS). This would facilitate Indian companies to undertake fresh investment or expansion of existing JV/WOS including mergers and acquisitions abroad by harnessing resources at globally competitive rates.

This liberalization has come as a further boost to the corporate sector in India, which has already gone into ECB overdrive in the past couple of months.

Circular that the ADs will have to comply with.

Source: RBI Circular No. 7dated February 23, 2004

Disclaimer

The contents of this hotline should not be construed as legal opinion. View detailed disclaimer.

This Hotline provides general information existing at the time of preparation. The Hotline is intended as a news update and Nishith Desai Associates neither assumes nor accepts any responsibility for any loss arising to any person acting or refraining from acting as a result of any material contained in this Hotline. It is recommended that professional advice be taken based on the specific facts and circumstances. This Hotline does not substitute the need to refer to the original pronouncements.

This is not a Spam mail. You have received this mail because you have either requested for it or someone must have suggested your name. Since India has no anti-spamming law, we refer to the US directive, which states that a mail cannot be considered Spam if it contains the sender's contact information, which this mail does. In case this mail doesn't concern you, please unsubscribe from mailing list.

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Corpsec Hotline

February 24, 2004

External Commercial Borrowings (ECB) for Overseas Direct Investment/Mergers and Acquisitions

In continuance of the liberalization trend set by the Reserve Bank of India (RBI) and the Government, the RBI has liberalized the ECB norms once again, in order to facilitate Indian Companies to borrow monies for the acquisition of companies outside India.

Circular No. 75 issued by the RBI, will enable the Indian companies to become global players by facilitating their overseas direct investment. This is envisaged to be done by broadening the permitted end-use for ECB to include overseas direct investment in Joint Ventures (JV) / Wholly Owned Subsidiaries (WOS). This would facilitate Indian companies to undertake fresh investment or expansion of existing JV/WOS including mergers and acquisitions abroad by harnessing resources at globally competitive rates.

This liberalization has come as a further boost to the corporate sector in India, which has already gone into ECB overdrive in the past couple of months.

Circular that the ADs will have to comply with.

Source: RBI Circular No. 7dated February 23, 2004

Disclaimer

The contents of this hotline should not be construed as legal opinion. View detailed disclaimer.

This Hotline provides general information existing at the time of preparation. The Hotline is intended as a news update and Nishith Desai Associates neither assumes nor accepts any responsibility for any loss arising to any person acting or refraining from acting as a result of any material contained in this Hotline. It is recommended that professional advice be taken based on the specific facts and circumstances. This Hotline does not substitute the need to refer to the original pronouncements.

This is not a Spam mail. You have received this mail because you have either requested for it or someone must have suggested your name. Since India has no anti-spamming law, we refer to the US directive, which states that a mail cannot be considered Spam if it contains the sender's contact information, which this mail does. In case this mail doesn't concern you, please unsubscribe from mailing list.

NDA Connect

Connect with us at events, 
conferences and seminars.