The Reserve Bank of India (RBI) said it would withdraw from Jan. 1 some concessions on overseas borrowing for Indian firms introduced during the global credit crisis, although it also eased rules for the infrastructure and telecoms sectors.
The changes would limit the ability of firms to borrow funds abroad and then repatriate them, while still encouraging long-term investment needed to overhaul ageing infrastructure and underpin economic growth.
“In view of the improvement in the credit market conditions and narrowing credit spreads in the international market it has been decided to withdraw the existing relaxation in the all-incost ceilings under the approval route,” RBI said in a statement on Dec. 9 night.
A facility for Indian companies to buy back their foreign currency convertible bonds under the automatic route and approval route would be discontinued from January due to the improvement in the equity market.
Read More>>
Read More>>
Comments :
Post a Comment