Home |Business | What are the requirements for converting External Commercial Borrowings/Lump entirety Fee/Royalty etc. into Equity?

What are the requirements for converting External Commercial Borrowings/Lump entirety Fee/Royalty etc. into Equity?

Answer Notify Me - 1 Notifying - 2



Shilpa Shilpa
Answered on February 14,2020

The conversion of External Commercial Borrowings (ECB) in convertible foreign currency into equity is subject to the following conditions:

  • The activity of the Company is covered under the Automatic Route for FDI or the Company has obtained Government approval for foreign equity
  • The foreign equity after conversion of ECB into equity is within the sectoral cap, if any Pricing of shares is as per the provision of section (2), Annexure 3 of the Consolidated FDI Policy
  • Compliance with the requirements prescribed under any other statute and regulation in force
  • The conversion facility is available for ECB availed under the Automatic or Government Route and is applicable to ECB, due for payment or not, as well as secured/unsecured loans availed from non-resident collaborators

For more information, click here 

Clap Clap 1
Share Share Answer Share Share
Views 32 views
tesz.in
Hey , can you help?
Answer this question
Guide

How to set up a business in India from scratch?

Setting up a Business in India involves the following steps Choosing the type of business Business Registration Process Central and State level Approvals / Compliances Wi..
  Click here to get a detailed guide

    • Related Questions