Merry Ltd. is planning to access the external commercial borrowings under approval route for the expansion of its business. As a Company Secretary, prepare a checklist in this regard.

For accessing External Commercial Borrowing under approval route the following is required to be complied by Merry Ltd.: Check the Eligibility of borrower Check the recognition of lender. Check whether total outstanding stock of ECBs (including the proposed ECBs) from a foreign equity lender should not exceed seven times the equity holding, either directly or indirectly of the lender (in case of lending by a group company, equity holdings by the common parent would be reckoned) Check the All in cost Ceiling. Check the permitted end use requirements. Check whether the proposed parking of ECB funds is as per the norms. Check whether RBI permission is obtained for Pre-payment of ECB for amounts exceeding USD 500 million. Check the provisions regarding refinancing/rescheduling of ECB if any.