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In reference to raising capital in nature of unsecured compulsorily Convertible deb to be issued to 100% holding company outside India, what is the tenure (max & Min) to issue and also the interest rate? Kindly also give reference to corresponding Section of the Act?

Fund raising

Posted By: Devesh k shah 10 year(s) ago

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RAMAMURTHY

While there is no ceiling for exempted deposits, you will be governed by master circular ofRBI for external commercial borrowings. It is 350 basis points over LIBOR for borrowings above 3years to 5 years and 500 basis points over LIBOR borrowings over 5 years. Ensure you are falling under automatic route or otherwise go for approval route. Under companies Act the borrowing can not exceed the market value of security as valued by valuer.

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