Some of the key changes made via this notification are-

  1. Banks can now allow transfer of ECB from one company to another on account of re-organisation at the borrower’s level in the form of merger/demerger/ amalgamation/acquisition, provided that they are convinced that the company acquiring the ECB is an eligible borrower and adheres to all the applicable guidelines.
  1. Banks have been empowered to make changes to the name of the ECB lender, after satisfying themselves on the authenticity of such transactions.
  1. The new norms will be applicable to ECBs raised under the automatic and approval routes and not to foreigncurrency convertible debentures.
  1. Banks can make changes and modifications in the draw-down and repayment schedules. This involves any change made in the average maturity period and an increase or decrease in the all-in-cost. The revised average maturity period and the terms of the all-in-cost have to be in conformity with the applicable ceilings and guidelines.

If the lender is a foreign branch or subsidiary of an Indian bank, then the changes shall be subject to the prudential norms.

January 23rd, 2015