External commercial borrowing

6. Indian companies were allowed to buy back their Foreign Currency Convertible Bonds (FCCBs) under the approval route, up to June 30, 2010. On a review of policy and in view of the representations received from the issuers of FCCBs, it has been decided to consider applications, under the approval route, for buyback of FCCBs until June 30, 2011, subject to the issuers complying with all the terms and conditions of buyback / prepayment of FCCBs. [RBI/2010-11/158 - A.P. (DIR Series) Circular No.07 dated August 09, 2010 issued by RBI under FEMA]

7. At present, entities in the services sectors viz., Hotels, Hospitals and Software are allowed to avail of ECB up to USD 100 million per financial year under the Automatic Route, for foreign currency and/or Rupee capital expenditure for permissible end-uses. On a review it has now been decided to consider applications from the corporate in the Hotel, Hospital and Software sectors to avail of ECB beyond USD 100 million under the Approval Route (RBI/2010-11/167- A.P. (DIR Series) Circular No.08 Dated August 12, 2010 issued by RBI under FEMA).

FIIS' INVESTMENTS IN GOVERNMENT SECURITIES AND CORPORATE BONDS

8. At present, FIIs registered with SEBI are permitted to invest in Government Securities and corporate bonds up to USD 5 billion and USD 15 billion, respectively.

 

Name and contact address of Division Head

Dr Thomas Mathew
Joint Secretary (CM),
Department of Economic Affairs
Room No. 39-B, North Block,
New Delhi - 110 001

Tel: 23094413 (O)
E-mail: mathew.thomas[at]nic[dot]in