On 19 September 2018, the Reserve Bank of India liberalized certain aspects of the external commercial borrowings (ECB) policy through A P (DIR Series) Circular No. 9 of 2018. The circular amended the 2016 master direction on ECB as follows:
- Eligible ECB borrowers in the manufacturing sector are permitted to raise ECB of up to US$50 million or its equivalent with a minimum average maturity period of one year. Prior to the amendment, the minimum average maturity period was three years.
- Indian banks are permitted to participate as arrangers/underwriters/market makers/traders in Rupee denominated bonds (RDBs) issued overseas, subject to applicable prudential norms. Prior to the amendment, Indian banks were only permitted to act as arrangers or underwriters for RDBs issued overseas.
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