The Reserve Bank of India (RBI) has now permitted Indian companies to raise external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCBs) if the proceeds are needed to refinance outstanding FCCB obligations.
No prior RBI approval would be required for this refinancing if the amount involved is up to US$500 million, if the refinancing is done more than six months before the maturity date of the outstanding FCCB obligation, and if certain other conditions are met (these conditions relate to maturity periods, all-in-cost ceilings, and end-use restrictions and apply to other generally permitted ECBs as well).
Prior RBI approval would be required if more than US$500 million is being raised or if these conditions are not met.