RBI/2013-14/302
A.P. (DIR Series) Circular No. 57
September 30, 2013
To
All Authorised Dealer Category – I Banks
Madam / Sir
External Commercial Borrowings (ECB) Policy – ECB proceeds for acquisition of
shares under the Government’s disinvestment programme of PSUs - Clarification
Attention of Authorised Dealer Category – I (AD Category – I) banks is invited
to the
A.P. (DIR Series) Circular No. 5 dated August 1, 2005, relating to
External Commercial Borrowings (ECB) as amended from time to time in terms of
which ECB proceeds is permitted to be used in the first stage acquisition of
shares in the disinvestment process and also in the mandatory second stage offer
to the public under the Government’s disinvestment programme of the public
sector undertakings (PSUs) shares.
- It is clarified that ECB is allowed for all subsequent stages of acquisition
of shares in the disinvestment process under the Government’s disinvestment
programme of the PSU shares; in other words, facility of ECB is available for
multiple rounds of disinvestment of PSU shares under the Government
disinvestment programme.
- AD Category – I banks may bring the contents of this circular to the notice
of their constituents and customers.
- The directions contained in this circular have been issued under Sections
10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) andare without prejudice to permissions / approvals required, if any, under any
other law.
Yours faithfully
(C D Srinivasan)
Chief General Manager