{"id":2822,"date":"2016-10-28T13:46:31","date_gmt":"2016-10-28T13:46:31","guid":{"rendered":"https:\/\/sunkrish.com\/?p=2822"},"modified":"2017-02-10T07:24:29","modified_gmt":"2017-02-10T07:24:29","slug":"rbi-spells-out-rules-for-start-ups-to-raise-ecbs","status":"publish","type":"post","link":"https:\/\/sunkrish.com\/index.php\/2016\/10\/28\/rbi-spells-out-rules-for-start-ups-to-raise-ecbs\/","title":{"rendered":"RBI spells out rules for start-ups to raise ECBs"},"content":{"rendered":"
\"\"<\/a>To support financing for start-ups, the Reserve Bank of India (RBI) on Thursday issued rules permitting these to raise external commercial borrowings (ECBs).<\/div>\n

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In a statement, RBI said the borrowing per start-up was capped at $3 million per financial year. It could be either in rupees or a convertible foreign currency or a combination of both.<\/div>\n

\u00a0<\/span><\/p>\n

The money could be used for any expenditure of the borrower\u2019s business.<\/div>\n
<\/div>\n

\u00a0<\/span><\/p>\n

The statement also said the funds so raised would have a three-year maturity and could be raised through loans as well as convertible and non-convertible debentures.<\/div>\n

\u00a0<\/span><\/p>\n

RBI said, \u201cStartups can tap lenders and investors only from countries that are members of the Financial Action Task Force.\u201d<\/div>\n

\u00a0<\/span><\/p>\n

If the funds were in rupees, the non-resident lender would provide it through swaps or outright sale through domestic banks.<\/div>\n

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RBI also advised start-ups raising money through ECB to have a risk-management policy as these would be exposed to currency risks because of exchange-rate movements.<\/div>\n

 <\/p>\n

Source: http:\/\/www.business-standard.com\/article\/companies\/rbi-spells-out-rules-for-start-ups-to-raise-ecbs-116102701777_1.html<\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

To support financing for start-ups, the Reserve Bank of India (RBI) on Thursday issued rules permitting these to raise external commercial borrowings (ECBs). \u00a0 In a statement, RBI said the borrowing per start-up was capped at $3 million per financial … Continued<\/a><\/p>\n","protected":false},"author":1,"featured_media":3386,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,493],"tags":[314,306,305,367,301],"class_list":["post-2822","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial-corporate-services","category-economy-business-updates-corporate-affairs","tag-debt","tag-ecb","tag-economy","tag-reserve-bank-of-india-rbi","tag-start-ups"],"_links":{"self":[{"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/posts\/2822","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/comments?post=2822"}],"version-history":[{"count":3,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/posts\/2822\/revisions"}],"predecessor-version":[{"id":3789,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/posts\/2822\/revisions\/3789"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/media\/3386"}],"wp:attachment":[{"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/media?parent=2822"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/categories?post=2822"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/tags?post=2822"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}