Master Direction – External Commercial Borrowings, Trade Credits and Structured Obligations (Updated as on December 22, 2023) (Supersedes Master Direction – External Commercial Borrowings, Trade Credit, Borrowing and Lending in Foreign Currency by Authorised Dealers and Persons other than Authorised Dealers (Updated as on November 22, 2018))

RBI Master Direction Link

Master Direction – External Commercial Borrowings, Trade Credits and Structured Obligations

This Master Direction outlines the framework for External Commercial Borrowings (ECBs), Trade Credits, and Structured Obligations. It provides definitions for key terms used in the document.

Part I – External Commercial Borrowings Framework outlines the approval routes, benchmark rates, and ECB liability-equity ratio for borrowing from foreign sources.

Part II – Trade Credits Framework deals with the regulations for trade credits, including the all-in-cost ceiling and the role of authorized dealers.

Part III – Structured Obligations covers the guidelines for structured obligations, such as Foreign Currency Convertible Bonds (FCCBs) and Foreign Currency Exchangeable Bonds (FCEBs).

The document also defines important terms, including FATF compliant country, Foreign Equity Holder, and Infrastructure Sector.

The Master Direction is updated periodically, with the latest updates being on December 22, 2023, September 30, 2022, August 01, 2022, June 09, 2022, December 10, 2021, and April 12, 2021.

Chat with the Master Direction:

Download: Master Direction – External Commercial Borrowings, Trade Credits and Structured Obligations (Updated as on December 22, 2023) (Supersedes Master Direction – External Commercial Borrowings, Trade Credit, Borrowing and Lending in Foreign Currency by Authorised Dealers and Persons other than Authorised Dealers (Updated as on November 22, 2018))