Zoom Ltd. engaged in the business of software development is contemplating raising finance through ECB route. Explain different variants of ECB and the tenure for which the ECB can be raised to the Company Secretary of t

ECBs are commercial loans raised by eligible resident entities from recognised non-resident entities and should conform to parameters such as minimum maturity etc. Minimum Average Maturity Period of ECB are as under: ECB raised by manufacturing companies up to USD 50 million or its equivalent per financial year-1 year ECB raised from foreign equity holder for working capital purposes, general corporate purposes or for repayment of Rupee loans- 5 Years ECB raised for Working capital purposes or general corporate purposes and on-lending by NBFCs for working capital purposes or general corporate purposes- 10 years ECB raised for repayment of Rupee loans availed domestically for capital expenditure and on-lending by NBFCs for the same purpose-7 years ECBs can be raised as: Loans. e.g., bank loans, loans from equity holder, etc. Capital market instruments, e.g. Securitized instruments (e.g. floating rate notes / fixed rate bonds / non-convertible, optionally convertible or partially convertible preference shares/ debentures FCCB FCEB Buyers' credit / suppliers' credit. Financial lease. However, ECB framework is not applicable in respect of the investment in non-convertible debentures (NCDs) in India made by Registered Foreign Portfolio Investors (RFPIs).