In consultation with Government of India, the Reserve Bank of India liberaised some aspects of ECB policy including policy on Rupee Denominated Bonds (RDB).
According to review of the policy, the eligible borrower companies in manufacturing sector can raise Extranal Commercial Borrowings up to USD 50 million or its equivalent with minimum average maturity period of one year instead of 3 years as per extant norms under Master Direction No. 5 dated January 01, 2016.
In case of Rupee Denominated Bonds (RDBs), hither to Indian banks could act as arranger and underwriter for RDBs issued overseas and also in case of underwriting an issue, but their holding couldnot be more than 5 per cent of the issue size after 6 months of issue. The Indian banks are now permitted to participate as arrangers/underwriters/arket makers/traders in RDB issued overseas subject to prudential norms.
All other norms under ECB remain unchanged .
Reference : RBI circular RBI/2018-19/48 A.P. (DIR Series) Circular No.9 dated September 19, 2018
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