External Commercial Borrowings (ECB) Compliances

What is External Commercial Borrowing (ECB)?

External Commercial Borrowings (ECB) refer to loans, credit facilities, or debt instruments raised by Indian businesses from foreign lenders, such as banks, financial institutions, or overseas investors. ECBs allow companies to access international funding at competitive interest rates, making them a valuable financial tool for expansion and investment.

How We Assist in ECB Compliance

ECB Loan Structuring & Compliance Advisory

Before raising ECBs, businesses need to ensure they comply with RBI guidelines regarding eligible borrowers, recognized lenders, borrowing limits, and permitted end-use.

Filing of ECB Returns (ECB-2 Form)

Once an ECB is availed, borrowers must regularly report their loan details and transactions to RBI via the ECB-2 Return.

Consequences of Non-Compliance:

  • RBI may impose penalties for late or incorrect filing.
  • Future ECB borrowings may get delayed or restricted.
  • Increased scrutiny from regulatory authorities.
Ensuring End-Use Compliance

RBI has strict regulations on how ECB funds can be utilized. Ensuring end-use compliance is crucial to avoid penalties and maintain smooth transactions.

Get access to international funding while staying compliant!

Why Choose Statutory Steps?
  • Expert-Led Compliance - Our team ensures your FEMA filings are accurate and timely.
  • Cost-Effective Solutions - Avoid hefty penalties with our professional compliance services.
  • End-to-End Support - From documentation to approval, we handle it all.
  • Customized Assistance - Every business is unique, and so are our solutions!
 
     
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