External Commercial Borrowings are commercial loans raised by eligible resident entities from recognised non-resident entities. The RBI regulates ECB by specifying parameters, such as eligible borrowers and lenders, permitted end use, minimum average maturity period, maximum all-in-cost ceiling, etc. For details, please visit External Commercial Borrowings: Simple Guidelines well received…

Shares are considered as moveable property and are included in the definition of “Goods” as given in the Sale of Goods Act, 1930. Hence, shares are freely transferable. Though this is true for public and listed companies, transfer of shares is restricted (not prohibited) in case of private companies by…

Can a Company capitalize its debts (both current and non-current) by converting it into equity shares? There are instances when a Company, in order to meet its contractual obligation or to achieve an ideal Debt to Equity ratio, contemplates to convert its debt into equity shares. We are all aware…

Reserve Bank of India (RBI) based on reporting being submitted by Resident Individual or Indian Party in Overseas Investments, summarizes and segregate the data monthly into three divisions a) Equity b) Loan and c) Guarantee. Analysis of RBI data on destination and sectoral dispersion, reveals that Singapore, USA and UK…

How long is COVID going to stay? Is it at all going to get over? Has any pandemic lived for ever? How do you foresee the future of any business after COVID, especially with cross border perspective? Well, you have your own understanding and wisdom to guide on all this.…

An investor establishes foreign business operations or acquires foreign business assets, including establishing ownership or controlling interest in a foreign company.  There are various investment vehicles established in India that have attracted FDI in India over years such an Indian company, LLP, other investment vehicles, etc. Let’s have a squint on…

For the FDI proposal in the sectors falling under the Government Approval Route, the applications were initially processed by FIPB and then the application went through multiple bodies/ministries for approval. This was a time-consuming process since multiple administrative bodies were involved. Thus, in order to provide expeditious disposal of FDI…

Once a company is incorporated, the immediate next steps are post-incorporation compliances which include conducting of first Board Meeting, appointment of first auditors, printing, issue and stamping of share certificates etc. While all these compliances are critical for a company’s smooth start, here, we shall focus on the technicalities associated…

According to the data published by the RBI, total loans raised by the eligible borrowers through external commercial borrowings (ECB) has increased significantly over last two years. The ECB has been raised under both, automatic as well as approval route. The RBI regulates ECB by specifying parameters, such as eligible…

After you have evaluated the novel markets of a foreign country, it is time to evaluate the various business structures offered by the law of the land and then very diligently decide on the best suited structure. The structure should be based on the idea of investment, your preferences on…