External Commercial Borrowings (ECB) under FEMA, 1999

Business needs funds and funds may be raised by many routes, one of the popular routes is ECB. ECB is an opportunity but comes with a responsibility. Responsibilities include compliances, reporting requirements, Interest costs, tenure limitations, and sectoral exposure often push companies to look forward. ECB is an opportunity to borrow funds from outside India. Sometimes domestic markets are not enough to meet the business requirements due to high interest rates or unavailability of funds....