Does it come under (ecb)external commercial borrowings????

Dear Manpreet,

As per RBI/2012-13/15 Master Circular No.15/2012-13 dated July 2, 2012  Section I,  Point 4(iii) :

“As far as debentures are concerned, only those which are fully and mandatorily convertible into equity, within a specified time would be reckoned as part of equity under the FDI Policy.”

Non convertible debentures would be reckoned as a debt and ECB Guidelines will apply.

Finally, for conditions for repayment of Rupee loan by means of ECB, please refer RBI circular : RBI/2012-13/200 A.P. (DIR Series) Circular No. 26 dated September 11, 2012.

Regards,

Veeral