4. If the lender is an overseas branch \/ subsidiary of an Indian bank, the changes shall be subject to the applicable prudential norms.<\/p>\n

5. It has also been decided to delegate powers to the designated AD Category-I banks to permit changes in the name of the lender of ECB after satisfying themselves with the bonafides of the transactions and ensuring that the ECB continues to be in compliance with applicable guidelines. Further, the AD Category-I banks may also allow the cases requiring transfer of the ECB from one company to another on account of re-organisation at the borrower\u2019s level in the form of merger \/ demerger \/ amalgamation \/ acquisition duly as per the applicable laws \/ rules after satisfying themselves that the company acquiring the ECB is an eligible borrower and ECB continues to be in compliance with applicable guidelines.<\/p>\n

6. These measures of simplification will be applicable for ECBs raised both under the automatic and approval routes. FCCBs will, however, not be covered within these provisions.<\/p>\n

7. These changes in the terms and conditions of ECB and \/ or any other changes allowed by the AD Category-I banks under the powers already delegated and \/ or changes approved by the Reserve Bank should be reported to the Department of Statistics and Information Management (DSIM) of the Reserve Bank through revised Form 83 at the earliest, in any case not later than 7 days from the changes effected. While submitting revised Form 83 to the DSIM, the changes should be specifically mentioned in the communication. Further, these changes should also get reflected in the ECB 2 returns appropriately.<\/p>\n

8. The modification to the ECB policy will come into force with immediate effect. All other aspects of the ECB policy shall remain unchanged.<\/p>\n

9. AD Category-I banks may bring the contents of this Circular to the notice of their constituents and customers.<\/p>\n

10. The directions contained in this Circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions \/ approvals required, if any, under any other law.<\/p>\n

Yours faithfully<\/p>\n

B P Kanungo
Principal Chief General Manager<\/p>\n","protected":false},"excerpt":{"rendered":"