By Accommodation Times News Service
As per the guidelines a new notification has come that from now onwards corporate that are under investigation by any law enforcing agencies like the Directorate of Enforcement (DoE) will not be allowed to access ECB under the automatic route. Any such request from the corporate will be examined by the Reserve Bank under the approval route. Now accordingly in case of all applications where the borrowing entity has indicated that pending investigations, adjudications, appeals the authorized dealers while approval shall intimate the concerned agencies by endorsing the approval letter. The same procedure will be followed by the RBI while approving such proposals. These modifications to the ECB guideline will come into force with immediate effect, all other ECB policy such as eligible borrower, recognized lender , end—use, average maturity remain unchanged.
The directions contained in this circular have been issued under sections 10 (4) and 11 (1) of the foreign exchange management Act (FEMA).