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Dikshant Malhotra & Associates
ECB Advisory & ComplianceGuidance and compliance for raising funds from international lenders under RBI’s External Commercial Borrowings framework.

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External Commercial Borrowings (ECB) Compliance
Indian companies often require access to low-cost international funding for expansion, capital expenditure, or working capital. External Commercial Borrowings (ECBs) are one such route where businesses borrow funds from foreign lenders such as banks, financial institutions, or parent companies. While ECBs are an attractive financing option, they are strictly regulated by the Reserve Bank of India (RBI) under the Foreign Exchange Management Act (FEMA), 1999. Companies must adhere to RBI’s ECB framework, covering eligible borrowers, recognized lenders, end-use restrictions, all-in-cost ceilings, and strict reporting requirements. At Dikshant Malhotra & Associates, we help companies structure, report, and comply with ECB regulations, ensuring that international borrowing becomes a strategic advantage rather than a compliance burden.Benefits of ECB Compliance
Access to Cheaper Capital – Raise funds at globally competitive interest rates.
Global Expansion – Finance overseas acquisitions and long-term projects.
Flexibility in Tenure – Borrow medium to long-term funds (3 to 10 years+).
Compliance Assurance – Avoid penalties and regulatory hurdles.
Investor Confidence – Transparent ECB compliance builds credibility with lenders.
Key ECB Compliance Services
Advisory on ECB Framework – Eligible borrowers, recognized lenders, maturity norms, and end-use restrictions.
Structuring ECB Transactions – Guidance on route selection (Automatic vs. Approval route).
Documentation Support – Drafting loan agreements, board resolutions, and declarations.
ECB Reporting – Filing of Form ECB, ECB-2 return (monthly), and revised reporting formats with RBI.
RBI Approvals & Liaisoning – Coordination with RBI and Authorized Dealer (AD) banks for smooth compliance.
Compounding of Defaults – Assistance in rectifying delayed or incorrect filings through RBI compounding.
Our Process
Initial Consultation – Assess borrowing requirements and eligibility under ECB framework.
Structuring & Advisory – Determine route, sectoral limits, and permissible end-use.
Documentation & Approvals – Drafting agreements and obtaining RBI/AD bank approvals.
Reporting & Filing – Timely filing of ECB-2 returns and other compliance forms.
Monitoring & Closure – Assistance with repayment tracking, prepayment approvals, and closure reporting.
Why Choose DMA for ECB Compliance?
Extensive experience in ECB structuring and reporting for foreign subsidiaries & MNCs.
Expert knowledge of FEMA, RBI Master Directions, and ECB guidelines.
Proven track record in handling compounding applications for ECB defaults.
Personalized support to ensure smooth flow of funds with zero regulatory hassle.
Relevant Provisions
Foreign Exchange Management Act, 1999 (FEMA)
RBI Master Direction – External Commercial Borrowings, Trade Credits & Structured Obligations (as amended)
Companies Act, 2013 (for corporate approvals)
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Frequently Asked Questions

Q1. What is the difference between Automatic Route and Approval Route for ECB?

Q2. What is the timeline for filing ECB-2 returns?

Q3. Can ECB be used for working capital or repayment of existing loans?

Q4. What happens if ECB reporting is delayed?

Q5. How does DMA help with ECB compliance?

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In today's business environment, the world demands quality professional services that are provided in a timely and cost-effective manner. We, at Dikshant Malhotra & Co, believe in putting our client's needs squarely in front at all times.

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