"The External Commercial Borrowings (ECB) proceeds can be parked abroad." Explain.
CS Professional · Corporate Funding & Listings in Stock Exchanges · PYQS · December 2021
"The External Commercial Borrowings (ECB) proceeds can be parked abroad." Explain.
Answer & Explanation:
The External Commercial Borrowings (ECB) proceeds are permitted to be parked abroad in a prescribed manner. ECB proceeds meant only for foreign currency expenditure can be parked abroad pending utilization. Till utilisation, these funds can be invested in the following liquid assets: deposits or Certificate of Deposit or other products offered by banks rated not less than AA(-) by Standard and Poor/ Fitch IBCA or Aa3 by Moody; treasury bills and other monetary instruments of one-year maturity having minimum rating as indicated above; and deposits with foreign branches/ subsidiaries of Indian banks abroad.
Topics: Corporate Funding
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