Sunday , September 27, 2026 |   18:59:41 IST
INTL TAXATION INTL MISC TP FDI LIBRARY VISA BIPA NRI
About Us Contact Us Newsletters
 
NEWS FLASH
 
INTL - Per settled legal position, date on which document or order is electronically uploaded on ITBA portal with generated DIN must be legally recognized as date of receipt by tax authority: ITAT (See Breaking News) I-T - Section 149(1)(c) applies equally to non-residents and absence of foreign asset disclosure obligation does not bar reopening: ITAT SB (See Breaking News) TP - As per settled precedent, Bright Line Test method is rejected for determining adjustments on Advertising Marketing and Promotion expenses: ITAT (See Breaking News) I-T - Revenue cannot treat Sec 144C as standalone code to bypass limitation period u/s 153: ITAT (See Breaking News) TP - Per Section 144C, AO is required to first pass draft assessment order, if adjustment prejudicial to assessee is proposed, before passing the final order: ITAT (See Breaking News) TP - Rejection of TNMM method adopted by assessee without bringing any comparable uncontrolled transaction on record & determination of ALP on ad hoc basis is sustainable: ITAT (See Breaking News) INTL - PCIT, being an authority of coordinate rank, is not empowered to invoke revisional jurisdiction u/s 263 over assessment framed in compliance with DRP's directions: ITAT (See Breaking News) INTL - DRP is collegiate body & holds coordinate rank with PCIT; ergo, order passed per directions of DRP cannot be subject to revision u/s 263: ITAT (See Breaking News) TP - TPO ought to apply 10-times turnover filter on either side of assessee's turnover, considering that size of operations in software sector has bearing on operating margins & that large companies enjoy advantages arising from operational efficiencies & intangibles: ITAT (See Breaking News)
 
TII SEARCH
 
 
   
Home >>
 

External Commercial Borrowings (ECB) Policy - Review of Hedging Provision
By TII News Service
Nov 26, 2018 , Mumbai

    

A.P. (DIR Series)

CIRCULAR NO

15/Dated: November 26, 2018

To

All Category-I Authorised Dealer Banks

External Commercial Borrowings (ECB) Policy - Review of Hedging Provision

Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to paragraphs 2.4.2 and 2.5 of Master Direction No.5 dated January 1, 2016 on "External Commercial Borrowings, Trade Credit, Borrowing and Lending in Foreign Currency by Authorised Dealers and Persons other than Authorised Dealers", as amended from time to time and A. P. (DIR Series) Circular No. 11 dated November 06, 2018, in terms of which certain eligible borrowers raising foreign currency denominated ECBs under Track I, having an average maturity between 3 and 5 years, are mandatorily required to hedge their ECB exposure fully.

2. On a further review of the extant provisions, it has been decided, in consultation with the Government of India, to reduce the mandatory hedge coverage from 100 per cent to 70 per cent for ECBs raised under Track I of the ECB framework by eligible borrowers given at paragraph 2.4.2 (vi) of the aforesaid Master Direction for a maturity period between 3 and 5 years. Further, it is also clarified that ECBs falling within the aforesaid scope but raised prior to the date of this circular will be required to mandatorily roll-over their existing hedge(s) only to the extent of 70 per cent of outstanding ECB exposure.

3. All other provisions of the ECB policy remain unchanged. AD Category - I banks should bring thecontents of this circular to the notice of their constituents and customers.

4. The aforesaid Master Direction No. 5 dated January 01, 2016 is being updated to reflect the changes.

5. The directions contained in this circular have been issued under section 10(4) and 11(2) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions /approvals, if any, required under any other law.

[RBI/2018-19/79]

(Vandana Khare)
General Manager

 
 
INTL TAXATION INTL MISC TP FDI LIBRARY VISA BIPA NRI TII
  • DTAA
  • Circulars (I-T Act, 1922)
  • Limited Treaties
  • Other Treaties
  • TIEAs
  • Notifications
  • Circulars
  • Relevant Sections of I-T Rules,1962
  • Instructions
  • Administrative Orders
  • DRP Panel
  • I-T Act, 1961
  • MLI
  • Relevant Portion of I-T Act,1922
  • GAAR
  • MAP
  • OECD Conventions
  • Draft Guidelines
  • DTC Bill
  • Committee Reports
  • FATCA
  • Intl-Taxation
  • Finance Acts
  • Manual on EoI
  • UN Model Taxation
  • Miscellaneous
  • Cost Inflation Index
  • Union Budget
  • Information Security Guidelines
  • APA Annual Report
  • APA Rules
  • Miscellaneous
  • Relevant Sections of Act
  • Instructions
  • Circulars
  • Notifications
  • Draft Notifications
  • Forms
  • TP Rules
  • APA FAQ
  • UN Manual on TP
  • Safe Harbour Rules
  • US Transfer Pricing
  • FEMA Act
  • Exchange Manual
  • Fema Notifications
  • Master Circulars
  • Press Notes
  • Rules
  • FDI Circulars
  • RBI Circulars
  • Reports
  • FDI Approved
  • RBI Other Notifications
  • FIPB Review
  • FEO Act
  • INTELLECTUAL PROPERTY
  • CBR Act
  • NBFC Report
  • Black Money Act
  • PMLA Instruction
  • PMLA Bill
  • FM Budget Speeches
  • Multimodal Transportation
  • Vienna Convention
  • EXIM Bank LoC
  • Manufacturing Policy
  • FTDR Act, 1992
  • White Paper on Black Money
  • Posting Policy
  • PMLA Cases
  • Transfer of Property
  • MCA Circular
  • Limitation Act
  • Type of Visa
  • SSAs
  • EPFO
  • Acts
  • FAQs
  • Rules
  • Guidelines
  • Tourist Visa
  • Notifications
  • Arbitration
  • Model Text
  • Agreements
  • Relevant Portion of I-T Act
  • I-T Rules, 1962
  • Circulars
  • MISC
  • Notification
  • About Us
  • Contact Us
  •  
     
    A Taxindiaonline Website. Copyright © 2010-2025 | Privacy Policy | Taxindiainternational.com Pvt. Ltd. OPC All rights reserved.