RBI allows firms facing probes to tap ECB fundS
8 March 2013 5:00 AM IST
The Reserve Bank has allowed corporates facing investigation from any law enforcement agency to raise funds through external commercial borrowings (ECBs) under the automatic route.
'...it has been decided to permit all entities to avail ECBs under the automatic route as per the current norms, notwithstanding the pending investigations/adjudications/ appeals by the law enforcing agencies, without prejudice to the outcome of such investigations/adjudications/appeals,' RBI said in a notification.
It further said, banks while approving such proposal of an applicant who has indicated about the pending investigation should intimate the concerned investigating agency by endorsing copy of the approval letter.'The same procedure will be followed by the Reserve Bank of India also while approving such proposals,' it said.
As per earlier guidelines, firms under investigation by any law enforcing agencies were not allowed to access ECB under the Automatic route.
'...it has been decided to permit all entities to avail ECBs under the automatic route as per the current norms, notwithstanding the pending investigations/adjudications/ appeals by the law enforcing agencies, without prejudice to the outcome of such investigations/adjudications/appeals,' RBI said in a notification.
It further said, banks while approving such proposal of an applicant who has indicated about the pending investigation should intimate the concerned investigating agency by endorsing copy of the approval letter.'The same procedure will be followed by the Reserve Bank of India also while approving such proposals,' it said.
As per earlier guidelines, firms under investigation by any law enforcing agencies were not allowed to access ECB under the Automatic route.
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