Proceeds From Bonds, FRNs and Syndicated Loan

Corporate borrowers who have raised ECBs for the iin~rt of capital goods and services through  bonds FROM syndicated loans are permitted  o remit funds into India The funds can be unleashed on  activities a5 per their business judgement, except’ investment in stock market or in  real estate, for  upto one year or till the actual import of the capital goods and services take place, whichever is earlier. In case borrowers   decide to deploy the funds abroad till the approved end-use requirement  arises, they can do so as per the RBI’s extant guidelines. The RBI  guidelines would have to be strictly  adhered to e , The RBI would be monitoring ECB proceeds parked outside. The sanction of additional  ECB to the company would be considered only after it has certified, that it has fully utilised the amount for the purpose  for which it was   raised.·

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