India’s central bank, the Reserve Bank of India introduced
changes in external commercial borrowings (ECB) norms under which authorized
money changing banks have been allowed to create a charge on securities.
In a notification, the RBI said the decision was
taken "with a view to liberalizing, expanding the options of securities
and consolidating various provisions related to creation of charge over securities
for ECB at one place.
At present, the choice of security to be provided to
the overseas lender or the supplier for securing ECB is left to the borrower. The
relaxations are with immediate effect.
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