Explain the following with reference to External Commercial Borrowing (ECB) : (I) Change of currency of borrowing (II) Limit and Leverage.

(I) Change of Currency of Borrowing Change of currency of External Commercial Borrowing (ECB) from one freely convertible foreign currency to any other freely convertible foreign currency as well as to Indian Rupee is freely permitted. Change of currency from Indian Rupee to any freely convertible foreign currency is not permitted. It may be noted that the ECB framework is not applicable in respect of investments in Non-Convertible Debentures in India made by Registered Foreign Portfolio Investors. Lending and borrowing under the ECB framework by Indian banks and their branches/subsidiaries outside India will be subject to prudential guidelines issued by the Department of Banking Regulation of the Reserve Bank. Further, other entities raising ECB are required to follow the guidelines issued, if any, by the concerned sectoral or prudential regulator. (II) Limit and Leverage The individual limits refer to the amount of ECB which can be raised in a financial year under the automatic route. The individual limits of ECB that can be raised by eligible entities under the automatic route per financial year for all the three tracks are set out as under: Up to USD 750 million or equivalent for the companies in infrastructure and manufacturing sectors, Non-Banking Financial Companies -Infrastructure Finance Companies (NBFC-IFCs), NBFCs-Asset Finance Companies (NBFC-AFCs), Holding Companies and Core Investment Companies; Up to USD 200 million or equivalent for companies in software development sector; Up to USD 100 million or equivalent for entities engaged in micro finance activities; and Up to USD 500 million or equivalent for remaining entities. ECB proposals beyond aforesaid limits will come under the approval route. Further, the borrowing entities will also be governed by the guidelines on debt equity ratio, issued, if any, by the sectoral or prudential regulator concerned.