Who are recognized lenders in External Commercial Borrowing Framework ?

Recognised lenders should be resident of Financial Action Task Force (FATF) or International Organisation of Securities commission's (IOSCO) compliant country, including on transfer of External Commercial Borrowing. However, Multilateral and Regional Financial Institutions where India is a member country will also be considered as recognised lenders; Individuals as lenders can only be permitted if they are foreign equity holders or for subscription to bonds/debentures listed abroad; and Foreign branches / subsidiaries of Indian banks are permitted as recognised lenders only for foreign currency ECB (except FCCBs and FCEBs). Foreign branches / subsidiaries of Indian banks, subject to applicable prudential norms, can participate as arrangers/underwriters/market maker/traders for Rupee denominated Bonds issued overseas. However, underwriting by foreign branches/ subsidiaries of Indian banks for issuances by Indian banks will not be allowed.