The Reserve Bank of India (RBI) on Tuesday eased the rules under the ECB (external commercial borrowing) framework. The central bank has reduced the minimum average maturity requirement for ECBs in the infrastructure space, raised by eligible borrowers, from currently five years to three years. The hedging rules have also been relaxed. From now on, borrowings of above five years will be exempt from the mandatory hedging provisions. Currently, borrowings of above 10 years do not need to be hedged. Accordingly, the, ECBs with a minimum average maturity period of three to five years, in the infrastructure space, will have to comply with the 100% mandatory hedging requirement.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content