ECB - Approval to RBI

[Anantha Subramanian]

Hi,

My company is in the process of applying to RBI, Mumbai for obtaining permission to raise ECB.

I have read Master Circular in RBI but would like to see a practical checklist in the same.

Request you all to provide the Checklist.......

Regards
Ananth

[R V SECKAR]

Hello,

 

You can go through the following link :

 

http://rvseckarfema.blogspot.com/2011/08/all-about-external-commercial.html

 

 

The above link contains the research article written by me and published in the souvenir brought out in the Southern Regional conference held on 19& 20th August 2011 at Chennai by ICSI-SRC.

 

You can have some conceptual knowledge on ECB.

 

Regards

 

R.V.Seckar

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[Anantha Subramanian]

Sir,

I visited the link provided by you and it was very useful. However I have the following clarifications:

* My current requirement comes under Automatic Route. The Circular says I have submit "necessary Documents" with the RBI. Hence in my case what would be that "necessary Documents"?

* Board Resolution towards the ECB application.
* Loan Agreement to be entered with Recognized Lender.
* Documents related to application of LRN (Loan Registration Number) by filing Form 83 in duplicate duly certified by any Practicing Professional
* Is it the Certificate of Due Diligence to be submitted by the Overseas Organizations  / Individual Lender to AD Bank of our company (Borrower)?
* Form 83 duly filled
* No Objection by AD Category I bank in case of creation of charge on immovable property if any.
* ECB Return - 2 on monthly basis once ECB is availed.

Kindly advise whether the above said list are enough and if not adequate, then please let me know the other documents.

Also request to provide me a sample Loan Agreement for seeing the model.

Regards
Ananth

[R V SECKAR]

Hello,

 

Before obtaining ECB , You have to obtain LRN ( Loan Registration number ) from RBI under automatic route .

 

The procedure for obtaining LRN number is as follows:

 

For allotment of Loan Registration Number (LRN), borrowers are required to submit Form 83, in duplicate, certified by the Company Secretary (CS) or Chartered Accountant (CA) to the designated AD bank. One copy is to be forwarded by the designated AD bank to the Director, Balance of Payments Statistics Division, Department of Statistics and Information Systems (DSIM), Reserve Bank of India, Bandra-Kurla Complex, Mumbai – 400 051.

 

(c) The borrower can draw-down the loan only after obtaining the LRN from DSIM, Reserve Bank.

 

(d) Borrowers are required to submit ECB-2 Return certified by the designated AD bank on monthly basis so as to reach DSIM, Reserve Bank within seven working days from the close of month to which it relates.

 

Please note that  previous returns relating to ECB viz. ECB 3 – ECB 6 have been discontinued with effect from January 31, 2004.

 

 

On 29 August 2011 17:31, Anantha Subramanian <ananthvi...@gmail.com> wrote:

 

Sir,

 

I visited the link provided by you and it was very useful. However I have the following clarifications:

 

* My current requirement comes under Automatic Route. The Circular says I have submit "necessary Documents" with the RBI. Hence in my case what would be that "necessary Documents"?

 

* Board Resolution towards the ECB application.  Yes

* Loan Agreement to be entered with Recognized Lender. Yes

* Documents related to application of LRN (Loan Registration Number) by filing Form 83 in duplicate duly certified by any Practicing Professional Yes

* Is it the Certificate of Due Diligence to be submitted by the Overseas Organizations  / Individual Lender to AD Bank of our company (Borrower)? Not necessary

* Form 83 duly filled

* No Objection by AD Category I bank in case of creation of charge on immovable property if any.

* ECB Return - 2 on monthly basis once ECB is availed. Yes

[Anantha Subramanian]

Thanks a lot sir.....

Is there any draft available for Loan Agreement format so that I can note the vital points from that.....

[R V SECKAR]

Hello,

 

Please enclosed herewith  a draft ECB agreement and you can change the same according to your needs.

 

Regards

 

R.V.Seckar

[Anantha Subramanian]

Thanks a ton sir....

Will revert for further clarifications if any....

Regards
Ananth

[sumit phadnis]

I really appreciate Mr. R.V. Seckar's efforts of knowledge sharing. He makes complicated FEMA so simple. Sir, I am your fan.

Regards,
Sumit Phadnis

[R V SECKAR]

Dear Mr. Sumit Phadhis,

 

Thanks a lot for your appreciation.

 

This motivates me to do more further research in FEMA.

 

Regards

 

R.V.Seckar

[R V SECKAR]

Dear Mr Mittal

 

Pl find enclosed herewith the draft ECB loan agreement . You can use the same for indigenous loan also with appropriate changes whereever necessary .

 

R.V.Seckar