Lenders Law

The Foreign Exchange Management (Establishment in India of a branch office or a liaison office or a project office or any other place of business) Regulations, 2016 have been the governing framework for foreign entities establishing Branch Offices (BOs), Liaison Offices (LOs), Project Offices (POs), or other business entities in India. Now, the Reserve Bank of India, on 3rd October, 2025, published  Draft Foreign Exchange Management (Establishment in India of a branch or office) Regulations, 2025  proposing several clarifications, procedural updates, and operational guidelines to streamline and modernize the framework. The 2025 draft keeps the core eligibility and operational principles of FEMA 2016 but streamlines processes, strengthens reporting and compliance, formalizes closure and appeal mechanisms, and assigns explicit responsibilities to designated banks. It is designed to make foreign office establishment in India more transparent and accountable while retaining flexi...

Provision ECB 2018 Draft ECB 2025 Amendment 1. Eligible borrowers A person resident in India (other than an individual) incorporated, established or registered under a Central Act or State Act may raise ECB, subject to the condition that it is permitted to borrow in terms of the applicable laws. Clarifies- (1) An eligible borrower under a restructuring scheme or CIRP may raise ECB only if plan permits. (2) An eligible borrower under pending investigation/adjudication/appeal may raise ECB, must disclose to designated AD, which informs agencies. 2. Recognised lenders An eligible borrower may raise ECB from: - A person resident outside India; - A branch outside India or in IFSC of entity whose lending business is regulated by RBI. No major change; includes branches in IFSC and regulated lenders 3. Cur...