New Delhi, Mar 6 (KNN) The Reserve Bank of India (RBI) has eased norms for the external commercial borrowing (ECB) by companiesregardless of the pending investigations by law enforcement agencies against them.
“It has been decided to permit all entities to avail of ECBs under the automatic route as per the current norms, notwithstanding the pending investigations or adjudications by the law enforcing agencies, without prejudice to the outcome of such investigations or adjudications,” RBI said in a notification.
As per the existing policy, corporates that are under investigation by any law enforcing agencies like the Directorate of Enforcement (DoE) are not allowed to access ECB under the automatic route. Any request by such corporates for ECB was examined by RBI under the approval route.
Modifications to the ECB guidelines will come into force with immediate effect. (KNN/SK)