The document discusses various aspects of export finance in India. It explains that exporters require both long-term and short-term financing at different stages of their business. The EXIM Bank provides long-term financing while commercial banks provide short-term financing through pre-shipment and post-shipment loans. The ECGC also facilitates short-term export financing through various credit risk insurance policies. Commercial banks follow RBI guidelines to provide financing at concessional rates against export orders. Exporters can avail of facilities like packing credit and sharing of credit with suppliers. Post-shipment financing is extended based on export documents and receivables. Exchange control regulations govern foreign exchange transactions under FEMA.
How to make outbound investment from india financing & complianceRamanuj Mukherjee
There are several options and procedures for Indian companies to make outbound investments. Under the automatic route, investments of up to 400% of net worth are permitted without approval. Companies can also use proceeds from ADR/GDR issuances. For investments outside these routes, approval must be obtained from authorities including the RBI. The document outlines financing options, compliance procedures, and regulations according to the Companies Act, FEMA, and SEBI.
Overview on External Commercial Borrowings (ECB) and its benefits for the Ind...Anandkasturi4
This document provides an overview of external commercial borrowings (ECB) in India and highlights changes made in 2019. It summarizes key aspects of ECBs such as eligible borrowers, recognized lenders, borrowing limits, end uses, and parking of ECB proceeds. Some key points include:
- Eligible borrowers for ECBs were expanded in 2019 to include more entities eligible for foreign direct investment.
- Recognized lenders now include residents of FATF-compliant countries and multilateral financial institutions where India is a member.
- The minimum average maturity period was increased to 3 years from various sector-specific limits previously.
- End uses were expanded and negative lists were introduced to restrict
This document provides an overview of different methods of pre-shipment and post-shipment financing available to exporters in India. It discusses packing credit in domestic currency, pre-shipment credit in foreign currency, and various types of post-shipment financing such as export bills purchased/discounted, advance against undrawn balance, and advance against claims of duty drawback. The objectives and procedures for availing each type of export financing are explained in detail.
Nangia Andersen HSBC Webinar on FEMA - Demystifying Business Challenges.pdfSandeep814482
The document provides an overview of key regulations and compliance requirements for corporates under FEMA including foreign direct investment, overseas direct investment, external commercial borrowings, liaison/branch/project offices, export/import of goods and services, and ESOPs issued by foreign companies. It discusses common issues that arise and regulatory guidelines. Non-compliance can result in penalties up to 3 times the amount involved or INR 2 lakhs if not quantifiable, and directors can be held liable if the contravention occurred with their consent or connivance.
ECB is basically a loan availed by an Indian entity from a nonresident lender
Most of these loans are provided by foreign commercial banks and other institutions
It refers to commercial loans availed from non-resident lenders with a minimum average maturity of 3 years
An external commercial borrowing (ECB) is an instrument used in India to facilitate Indian companies to raise money outside the country in foreign currency. The government of India permits Indian corporates to raise money via ECB for expansion of existing capacity as well as for fresh investments.
This document discusses export finance policies in India. It provides an overview of the various concessions offered by the government and RBI to boost exports, including cheap credit to exporters and refinancing to banks. It describes types of export financing like pre-shipment financing (packing credit) and post-shipment financing. Packing credit is working capital provided for purchase, processing, or packing of exported goods. Post-shipment financing supports export receivables after shipment. Key terms like export credit, working capital, current assets and liabilities are also defined in brief.
The document discusses various aspects of export finance in India. It explains that exporters require both long-term and short-term financing at different stages of their business. The EXIM Bank provides long-term financing while commercial banks provide short-term financing through pre-shipment and post-shipment loans. The ECGC also facilitates short-term export financing through various credit risk insurance policies. Commercial banks follow RBI guidelines to provide financing at concessional rates against export orders. Exporters can avail of facilities like packing credit and sharing of credit with suppliers. Post-shipment financing is extended based on export documents and receivables. Exchange control regulations govern foreign exchange transactions under FEMA.
How to make outbound investment from india financing & complianceRamanuj Mukherjee
There are several options and procedures for Indian companies to make outbound investments. Under the automatic route, investments of up to 400% of net worth are permitted without approval. Companies can also use proceeds from ADR/GDR issuances. For investments outside these routes, approval must be obtained from authorities including the RBI. The document outlines financing options, compliance procedures, and regulations according to the Companies Act, FEMA, and SEBI.
Overview on External Commercial Borrowings (ECB) and its benefits for the Ind...Anandkasturi4
This document provides an overview of external commercial borrowings (ECB) in India and highlights changes made in 2019. It summarizes key aspects of ECBs such as eligible borrowers, recognized lenders, borrowing limits, end uses, and parking of ECB proceeds. Some key points include:
- Eligible borrowers for ECBs were expanded in 2019 to include more entities eligible for foreign direct investment.
- Recognized lenders now include residents of FATF-compliant countries and multilateral financial institutions where India is a member.
- The minimum average maturity period was increased to 3 years from various sector-specific limits previously.
- End uses were expanded and negative lists were introduced to restrict
This document provides an overview of different methods of pre-shipment and post-shipment financing available to exporters in India. It discusses packing credit in domestic currency, pre-shipment credit in foreign currency, and various types of post-shipment financing such as export bills purchased/discounted, advance against undrawn balance, and advance against claims of duty drawback. The objectives and procedures for availing each type of export financing are explained in detail.
Nangia Andersen HSBC Webinar on FEMA - Demystifying Business Challenges.pdfSandeep814482
The document provides an overview of key regulations and compliance requirements for corporates under FEMA including foreign direct investment, overseas direct investment, external commercial borrowings, liaison/branch/project offices, export/import of goods and services, and ESOPs issued by foreign companies. It discusses common issues that arise and regulatory guidelines. Non-compliance can result in penalties up to 3 times the amount involved or INR 2 lakhs if not quantifiable, and directors can be held liable if the contravention occurred with their consent or connivance.
ECB is basically a loan availed by an Indian entity from a nonresident lender
Most of these loans are provided by foreign commercial banks and other institutions
It refers to commercial loans availed from non-resident lenders with a minimum average maturity of 3 years
An external commercial borrowing (ECB) is an instrument used in India to facilitate Indian companies to raise money outside the country in foreign currency. The government of India permits Indian corporates to raise money via ECB for expansion of existing capacity as well as for fresh investments.
This document discusses export finance policies in India. It provides an overview of the various concessions offered by the government and RBI to boost exports, including cheap credit to exporters and refinancing to banks. It describes types of export financing like pre-shipment financing (packing credit) and post-shipment financing. Packing credit is working capital provided for purchase, processing, or packing of exported goods. Post-shipment financing supports export receivables after shipment. Key terms like export credit, working capital, current assets and liabilities are also defined in brief.
The document provides information on External Commercial Borrowings (ECB) in India. It discusses that ECB refers to commercial loans from foreign sources and is a source of funds for expanding existing capacity or new investments. There are two routes to raise ECB - automatic route which does not require RBI approval for eligible borrowers within certain limits, and approval route which requires RBI approval. Eligible borrowers under automatic route include corporates and housing finance companies, while approval route has additional eligible categories like FIIs dealing with infrastructure. Common recognized lenders include international banks, capital markets and multilateral institutions.
ECGC was established in 1957 to provide credit insurance and financial support to Indian exporters. It is owned by the government and offers various guarantees and insurance products to exporters and banks to facilitate exports. These include guarantees for packing credit, export production financing, post-shipment credit, and more. ECGC also provides information to help exporters with market research, recovering debts, and ensuring payment. Recently it introduced a non-recourse maturity export factoring scheme to provide working capital financing to exporters based on their receivables.
The document discusses amendments made to regulations regarding opening escrow accounts and pledging shares for foreign direct investment transactions in India. Key points:
1) Authorized dealers Category-I banks and SEBI-authorized depositories can now open non-interest bearing escrow accounts in India on behalf of residents and non-residents for FDI transactions without prior RBI approval.
2) Shares of an Indian company held by non-resident investors can now be pledged to secure loans from Indian or overseas banks for business purposes of the company, subject to certain conditions like loan use and compliance with FDI policy.
3) The amendments aim to provide operational flexibility and ease procedures for joint ventures,
The document discusses amendments made to regulations regarding opening escrow accounts and pledging shares for foreign direct investment transactions in India. Key points:
1) Authorized dealers and SEBI depository participants can now open non-interest bearing escrow accounts in India on behalf of residents and non-residents for FDI transactions, without prior RBI approval.
2) Shares of an Indian company held by non-residents can now be pledged in favor of Indian or overseas banks to secure business loans for the company or its affiliates, subject to certain conditions.
3) The changes aim to provide more operational flexibility and ease procedures for FDI transactions like joint ventures and private equity investments.
This document discusses export financing provided by banks. It explains that banks provide both pre-shipment and post-shipment financing to exporters. Pre-shipment financing is working capital provided before goods are shipped, for activities like procuring raw materials. Post-shipment financing bridges the time between shipment and receipt of payment from importers. The document outlines various types of pre-shipment financing like packing credit and advances against letters of credit. It also discusses eligibility criteria, margin requirements, repayment processes and incentives available to exporters in India.
The document discusses financing as a marketing tool for exports. It covers various financing options for export orders like letters of credit, advances, and factoring. It also describes the roles of institutions that provide export financing like commercial banks, the Reserve Bank of India, Export-Import Bank of India, and discusses facilities like pre-shipment financing, post-shipment financing, and project financing. Islamic banking methods for export financing using concepts like Musharakah and Murabahah are also summarized.
This document provides information about Axis Bank's six-week vocational training program in their Forex department. It discusses the functions of Axis Bank's Forex department in Ludhiana, including money transfers, issuing demand drafts and cheques, and performing spot contracts, forward contracts, currency options, and other forex services. Organizational charts and SWOT analyses of the department are also presented. Export financing options like pre-shipment financing, post-shipment financing, and other concepts are defined in brief.
External Commercial Borrowings (ECB) and Foreign Currency Convertible Bonds (FCCB) are two sources of foreign funding for Indian companies. ECB refers to commercial loans taken from overseas lenders, while FCCBs are debt instruments issued abroad that can be converted into equity shares.
There are two routes for raising ECB/FCCB - automatic and approval. Certain companies in infrastructure, export, and manufacturing sectors can access funds under the automatic route up to $20-500 million based on maturity. Other companies require RBI approval. ECB/FCCB can be used for capital goods imports, overseas investment, but not stock markets or real estate. Prepayment and refinancing rules apply
Objectives & Agenda :
External Commercial Borrowings (ECB) are commercial loans raised by eligible resident entities from recognised non-resident entities. The objective of this Webinar is to understand the regulations laid down for the purposes of ECBs. We shall discuss the parameters such as minimum maturity, permitted and non-permitted end-uses, maximum all-in-cost ceiling, and other such conditions relating to ECBs. We shall also look at relevant Statistics.
Buyers' credit refers to loans arranged by overseas banks for Indian importers to pay their import bills, with the overseas bank funding the Indian bank which then pays the exporter. It provides financing benefits like extended payment terms, negotiating discounts, and favorable currency options. The process involves an overseas bank providing funds to the Indian importer's bank via its overseas branch to pay import bills on time.
The document discusses various types of corporate banking services provided by banks to corporate clients. It describes funded services like working capital finance, short term finance, and bill discounting. It also discusses non-funded services like letters of credit and bank guarantees. Finally, it summarizes external commercial borrowings, import trade credit, and foreign currency options for corporate financing.
This document discusses non-fund based credit facilities provided by banks. It begins by defining non-fund based facilities as facilities extended by banks that do not immediately involve an outflow of funds, but may later result in financial liability if commitments are not honored. Examples provided include letters of credit and bank guarantees. The advantages of non-fund based facilities for banks are then outlined, such as no immediate funds outlay and future risk exposure. Various types of non-fund facilities are also defined, with bank guarantees explained in further detail including definition, parties involved, types, and operational procedures.
Short term sources of finance include commercial papers and factoring. Commercial papers are money market instruments issued by companies with good credit ratings for 3 months to 1 year. Factoring involves selling a company's receivables to a factoring agent in exchange for immediate financing, with the factor taking on the risk of debt.
Long term sources include shares, debentures, term loans, venture capital and lease financing. Shares are equity while debentures are debt securities. Term loans are obtained from banks for capital expenditures. Venture capital provides early stage financing for new companies in exchange for equity. Lease financing involves leasing assets from a lessor.
Financial restructuring methods include debt-equity swaps,
The Export Credit Guarantee Corporation of India was established in 1957 by the Government of India to promote exports by providing insurance against payment risks. It offers various credit insurance policies to exporters, including standard policies for shipments under 180 days of credit as well as specialized policies for software and service exports. It also provides guarantee programs to banks to facilitate export financing through measures like packing credit guarantees.
This document discusses export financing provided by Indian banks and institutions. It describes pre-shipment and post-shipment financing for exporters. Pre-shipment financing provides working capital to enable exporters to procure materials and pack goods for export. It is provided for up to 270 days at interest rates linked to the prime lending rate. Post-shipment financing is available after goods are shipped and finances export receivables until proceeds are received, for up to 6 months at concessional rates. The Export-Import Bank of India, commercial banks, and Export Credit Guarantee Corporation provide various export financing options.
This document discusses various aspects of working capital, including:
1) It defines working capital as funds used to finance current assets like inventory, receivables, and cash required for day-to-day business operations.
2) It explains the operating cycle as the process by which cash is converted to raw materials, work in process, finished goods, receivables, and then back to cash.
3) Various methods of assessing working capital requirements are discussed, including the operating cycle method, projected balance sheet method, and cash budget method.
4) Sources of working capital like bank loans, trade credit, and overdraft facilities are also outlined.
This document provides an overview of External Commercial Borrowings (ECB) policy and procedures in India. It discusses the key aspects of ECB including the regulatory framework, eligible borrowers and lenders, amount and maturity limits, end uses of funds, security/collateral requirements, and ongoing compliance procedures. The document separates the rules for ECB under the automatic route versus the approval route and provides details on important processes like obtaining loan registration numbers and recurring reporting requirements.
The document summarizes key changes to foreign exchange laws in India related to overseas direct investments and foreign direct investment. Some of the key changes include:
- Restoring limits on overseas direct investments by Indian parties under the automatic route to pre-August 2013 levels, but requiring RBI approval for any single financial commitment exceeding $1 billion.
- Allowing issue of partly paid shares and warrants by Indian companies to foreign investors, subject to pricing guidelines where 25% of consideration is received upfront and the balance within 12-18 months.
- Revising pricing guidelines for issue/transfer of shares under foreign direct investment to provide greater flexibility, requiring listed companies to follow SEBI guidelines and allowing unlisted companies to issue
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...my Pandit
Dive into the steadfast world of the Taurus Zodiac Sign. Discover the grounded, stable, and logical nature of Taurus individuals, and explore their key personality traits, important dates, and horoscope insights. Learn how the determination and patience of the Taurus sign make them the rock-steady achievers and anchors of the zodiac.
More Related Content
Similar to 388703006-SBLC-ADVANCE-PERFORMANCE-GUARANTEE-APG-ppt.ppt
The document provides information on External Commercial Borrowings (ECB) in India. It discusses that ECB refers to commercial loans from foreign sources and is a source of funds for expanding existing capacity or new investments. There are two routes to raise ECB - automatic route which does not require RBI approval for eligible borrowers within certain limits, and approval route which requires RBI approval. Eligible borrowers under automatic route include corporates and housing finance companies, while approval route has additional eligible categories like FIIs dealing with infrastructure. Common recognized lenders include international banks, capital markets and multilateral institutions.
ECGC was established in 1957 to provide credit insurance and financial support to Indian exporters. It is owned by the government and offers various guarantees and insurance products to exporters and banks to facilitate exports. These include guarantees for packing credit, export production financing, post-shipment credit, and more. ECGC also provides information to help exporters with market research, recovering debts, and ensuring payment. Recently it introduced a non-recourse maturity export factoring scheme to provide working capital financing to exporters based on their receivables.
The document discusses amendments made to regulations regarding opening escrow accounts and pledging shares for foreign direct investment transactions in India. Key points:
1) Authorized dealers Category-I banks and SEBI-authorized depositories can now open non-interest bearing escrow accounts in India on behalf of residents and non-residents for FDI transactions without prior RBI approval.
2) Shares of an Indian company held by non-resident investors can now be pledged to secure loans from Indian or overseas banks for business purposes of the company, subject to certain conditions like loan use and compliance with FDI policy.
3) The amendments aim to provide operational flexibility and ease procedures for joint ventures,
The document discusses amendments made to regulations regarding opening escrow accounts and pledging shares for foreign direct investment transactions in India. Key points:
1) Authorized dealers and SEBI depository participants can now open non-interest bearing escrow accounts in India on behalf of residents and non-residents for FDI transactions, without prior RBI approval.
2) Shares of an Indian company held by non-residents can now be pledged in favor of Indian or overseas banks to secure business loans for the company or its affiliates, subject to certain conditions.
3) The changes aim to provide more operational flexibility and ease procedures for FDI transactions like joint ventures and private equity investments.
This document discusses export financing provided by banks. It explains that banks provide both pre-shipment and post-shipment financing to exporters. Pre-shipment financing is working capital provided before goods are shipped, for activities like procuring raw materials. Post-shipment financing bridges the time between shipment and receipt of payment from importers. The document outlines various types of pre-shipment financing like packing credit and advances against letters of credit. It also discusses eligibility criteria, margin requirements, repayment processes and incentives available to exporters in India.
The document discusses financing as a marketing tool for exports. It covers various financing options for export orders like letters of credit, advances, and factoring. It also describes the roles of institutions that provide export financing like commercial banks, the Reserve Bank of India, Export-Import Bank of India, and discusses facilities like pre-shipment financing, post-shipment financing, and project financing. Islamic banking methods for export financing using concepts like Musharakah and Murabahah are also summarized.
This document provides information about Axis Bank's six-week vocational training program in their Forex department. It discusses the functions of Axis Bank's Forex department in Ludhiana, including money transfers, issuing demand drafts and cheques, and performing spot contracts, forward contracts, currency options, and other forex services. Organizational charts and SWOT analyses of the department are also presented. Export financing options like pre-shipment financing, post-shipment financing, and other concepts are defined in brief.
External Commercial Borrowings (ECB) and Foreign Currency Convertible Bonds (FCCB) are two sources of foreign funding for Indian companies. ECB refers to commercial loans taken from overseas lenders, while FCCBs are debt instruments issued abroad that can be converted into equity shares.
There are two routes for raising ECB/FCCB - automatic and approval. Certain companies in infrastructure, export, and manufacturing sectors can access funds under the automatic route up to $20-500 million based on maturity. Other companies require RBI approval. ECB/FCCB can be used for capital goods imports, overseas investment, but not stock markets or real estate. Prepayment and refinancing rules apply
Objectives & Agenda :
External Commercial Borrowings (ECB) are commercial loans raised by eligible resident entities from recognised non-resident entities. The objective of this Webinar is to understand the regulations laid down for the purposes of ECBs. We shall discuss the parameters such as minimum maturity, permitted and non-permitted end-uses, maximum all-in-cost ceiling, and other such conditions relating to ECBs. We shall also look at relevant Statistics.
Buyers' credit refers to loans arranged by overseas banks for Indian importers to pay their import bills, with the overseas bank funding the Indian bank which then pays the exporter. It provides financing benefits like extended payment terms, negotiating discounts, and favorable currency options. The process involves an overseas bank providing funds to the Indian importer's bank via its overseas branch to pay import bills on time.
The document discusses various types of corporate banking services provided by banks to corporate clients. It describes funded services like working capital finance, short term finance, and bill discounting. It also discusses non-funded services like letters of credit and bank guarantees. Finally, it summarizes external commercial borrowings, import trade credit, and foreign currency options for corporate financing.
This document discusses non-fund based credit facilities provided by banks. It begins by defining non-fund based facilities as facilities extended by banks that do not immediately involve an outflow of funds, but may later result in financial liability if commitments are not honored. Examples provided include letters of credit and bank guarantees. The advantages of non-fund based facilities for banks are then outlined, such as no immediate funds outlay and future risk exposure. Various types of non-fund facilities are also defined, with bank guarantees explained in further detail including definition, parties involved, types, and operational procedures.
Short term sources of finance include commercial papers and factoring. Commercial papers are money market instruments issued by companies with good credit ratings for 3 months to 1 year. Factoring involves selling a company's receivables to a factoring agent in exchange for immediate financing, with the factor taking on the risk of debt.
Long term sources include shares, debentures, term loans, venture capital and lease financing. Shares are equity while debentures are debt securities. Term loans are obtained from banks for capital expenditures. Venture capital provides early stage financing for new companies in exchange for equity. Lease financing involves leasing assets from a lessor.
Financial restructuring methods include debt-equity swaps,
The Export Credit Guarantee Corporation of India was established in 1957 by the Government of India to promote exports by providing insurance against payment risks. It offers various credit insurance policies to exporters, including standard policies for shipments under 180 days of credit as well as specialized policies for software and service exports. It also provides guarantee programs to banks to facilitate export financing through measures like packing credit guarantees.
This document discusses export financing provided by Indian banks and institutions. It describes pre-shipment and post-shipment financing for exporters. Pre-shipment financing provides working capital to enable exporters to procure materials and pack goods for export. It is provided for up to 270 days at interest rates linked to the prime lending rate. Post-shipment financing is available after goods are shipped and finances export receivables until proceeds are received, for up to 6 months at concessional rates. The Export-Import Bank of India, commercial banks, and Export Credit Guarantee Corporation provide various export financing options.
This document discusses various aspects of working capital, including:
1) It defines working capital as funds used to finance current assets like inventory, receivables, and cash required for day-to-day business operations.
2) It explains the operating cycle as the process by which cash is converted to raw materials, work in process, finished goods, receivables, and then back to cash.
3) Various methods of assessing working capital requirements are discussed, including the operating cycle method, projected balance sheet method, and cash budget method.
4) Sources of working capital like bank loans, trade credit, and overdraft facilities are also outlined.
This document provides an overview of External Commercial Borrowings (ECB) policy and procedures in India. It discusses the key aspects of ECB including the regulatory framework, eligible borrowers and lenders, amount and maturity limits, end uses of funds, security/collateral requirements, and ongoing compliance procedures. The document separates the rules for ECB under the automatic route versus the approval route and provides details on important processes like obtaining loan registration numbers and recurring reporting requirements.
The document summarizes key changes to foreign exchange laws in India related to overseas direct investments and foreign direct investment. Some of the key changes include:
- Restoring limits on overseas direct investments by Indian parties under the automatic route to pre-August 2013 levels, but requiring RBI approval for any single financial commitment exceeding $1 billion.
- Allowing issue of partly paid shares and warrants by Indian companies to foreign investors, subject to pricing guidelines where 25% of consideration is received upfront and the balance within 12-18 months.
- Revising pricing guidelines for issue/transfer of shares under foreign direct investment to provide greater flexibility, requiring listed companies to follow SEBI guidelines and allowing unlisted companies to issue
Similar to 388703006-SBLC-ADVANCE-PERFORMANCE-GUARANTEE-APG-ppt.ppt (20)
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...my Pandit
Dive into the steadfast world of the Taurus Zodiac Sign. Discover the grounded, stable, and logical nature of Taurus individuals, and explore their key personality traits, important dates, and horoscope insights. Learn how the determination and patience of the Taurus sign make them the rock-steady achievers and anchors of the zodiac.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.AnnySerafinaLove
This letter, written by Kellen Harkins, Course Director at Full Sail University, commends Anny Love's exemplary performance in the Video Sharing Platforms class. It highlights her dedication, willingness to challenge herself, and exceptional skills in production, editing, and marketing across various video platforms like YouTube, TikTok, and Instagram.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...my Pandit
Explore the fascinating world of the Gemini Zodiac Sign. Discover the unique personality traits, key dates, and horoscope insights of Gemini individuals. Learn how their sociable, communicative nature and boundless curiosity make them the dynamic explorers of the zodiac. Dive into the duality of the Gemini sign and understand their intellectual and adventurous spirit.
Top mailing list providers in the USA.pptxJeremyPeirce1
Discover the top mailing list providers in the USA, offering targeted lists, segmentation, and analytics to optimize your marketing campaigns and drive engagement.
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Tastemy Pandit
Know what your zodiac sign says about your taste in food! Explore how the 12 zodiac signs influence your culinary preferences with insights from MyPandit. Dive into astrology and flavors!
Recruiting in the Digital Age: A Social Media MasterclassLuanWise
In this masterclass, presented at the Global HR Summit on 5th June 2024, Luan Wise explored the essential features of social media platforms that support talent acquisition, including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok.
Building Your Employer Brand with Social MediaLuanWise
Presented at The Global HR Summit, 6th June 2024
In this keynote, Luan Wise will provide invaluable insights to elevate your employer brand on social media platforms including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok. You'll learn how compelling content can authentically showcase your company culture, values, and employee experiences to support your talent acquisition and retention objectives. Additionally, you'll understand the power of employee advocacy to amplify reach and engagement – helping to position your organization as an employer of choice in today's competitive talent landscape.
At Techbox Square, in Singapore, we're not just creative web designers and developers, we're the driving force behind your brand identity. Contact us today.
Navigating the world of forex trading can be challenging, especially for beginners. To help you make an informed decision, we have comprehensively compared the best forex brokers in India for 2024. This article, reviewed by Top Forex Brokers Review, will cover featured award winners, the best forex brokers, featured offers, the best copy trading platforms, the best forex brokers for beginners, the best MetaTrader brokers, and recently updated reviews. We will focus on FP Markets, Black Bull, EightCap, IC Markets, and Octa.
1. 1.STAND BY LETTER OF CREDIT (SBLC)
&
2.ADVANCE PERFORMANCE
GUARANTEE(APG)/EXPORT PERFORMANCE BANK
GUARANTEE(EPBG)
MECKLAI INTERNATIONAL FINANCE
2. 1.STAND BY LETTER OF CREDIT(SBLC)
SBLC is similar to Bank Guarantee issued by Indian bankers of parent company
infavoring subsidiary for offshore day to day working capital. Foreign/offshore banks
finances against the SBLC of Indian banks.
Most Indian companies with imports use buyers’ credit to try and reduce their interest
cost of post-shipment finance. Over the past few years, several large Indian companies
have been extending this to pre-shipment finance (effectively working capital) by using
a Stand-By Letter of Credit (SBLC).
The company opens a SBLC through its bankers favoring the company’s overseas
subsidiary; the Indian parent company uses this facility to raise USD funds in the global
market remitted as a loan to the subsidiary for use as working capital or, in the case of
trading operations, to purchase goods globally and sell them anywhere.
3. Depending on market conditions, the cost for such a facility for amounts ranging
from $ 1 to $ 10 million for 1 to 2 years works out to about 4 to 5% p.a. (inclusive of
arrangement fees). It generally takes about 3 to 4 weeks for getting an in principle
offer letter against an SBLC, subject to submission of all required documents in timely
fashion.
Domestic bankers generally charge about 0.75-1.25% p.a. for issuing the SBLC,
and it requires a separate SBLC limit, which would be carved out of the company’s
overall bank limits.
Thus, the company’s total cost of USD working capital would work out to about 4.75
to 6.25%.
STAND BY LETTER OF CREDIT(SBLC) Contd..
5. Indian banks issues SBLC in favoring Subsidiary for working capital
purpose.
Based on this SBLC/Guarantee offshore bank finances to the subsidiary.
Subsidiary buys goods on behalf of parent company
Goods will be exported to india directly from seller
Documents will be routed through subsidiary.
SBLC again rolled over and it continues.
SBLC Procedure
6. Overseas Investment - Guarantee on behalf of Wholly Owned Subsidiaries (WOSs)/Joint Ventures
(JVs) abroad Overseas Investment should be within the present ceiling of 400% of the net worth of the
Indian Party as on the date of the last audited balance sheet.
Indian Party can offer any form of guarantee provided that: • All financial commitments including all
forms of guarantees are within the overall ceiling of 400% of net worth prescribed for overseas
investment.
• No guarantee should be 'open ended' i.e. the amount and period of the guarantee should be
specified upfront. In the case of performance guarantee, time specified for the completion of the
contract shall be the validity period of the related performance guarantee;
• In case the ceiling of 400% of net worth exceeds due to invocation of guarantee, the Indian Party
shall seek the prior approval of the Reserve Bank before remitting funds from India, on account for such
invocation.
• Issuance of corporate guarantees (including performance guarantee) is required to be reported to
RBI, etc.
Overseas Investment
7. 2. ADVANCE PAYMENT AGAINST LONG TERM EXPORTS
(MAXIMUM UP TO 10 YEARS)
It is also called Export Performance Bank Guarantee(EPBG)/Export
Securitization/Export Credit
As per the latest RBI master circular, exporters allowed to receive long term export
advance up to maximum of 10 years (earlier one year) to be utilized for execution of
long term supply contracts for exports of goods subject to the conditions.
AD bankers allowed the receipt of export advance payment for export of goods
which would take more than one year to manufacture & ship subject to conditions.
The extended duration of loans will enable exporters to access capital to fulfill long
term contractual obligations. This may help turn around many turnkey projects which
were hitherto stuck due to lack of funds
8. EPBG STRUCTURE
Such advances should be adjusted through future exports
Firm Irrevocable supply orders and contracts should be in place
Double financing for working capital for execution of export orders should be
avoided.
BG/SBLC may be issued for a term not exceeding two years at a time and
further rollover of not more than two years at a time.
BG/SBLC issued by from India in favour of overseas buyer shouldn’t be
discounted by the overseas branch /subsidiary of bank in India.
BG/SBLC should cover only the advance on reducing balance basis.
AD bank should ensure compliance with AML/KYC Guidelines and rigorously
evaluate like credit proposal.
Interest shouldn’t exceed Libor+200 bps pa
10. Subsidiary / offshore buyer enters into long-term supply/offtake agreement with
exporter.
Exporter issues BG/SBLC/Advance Payment Guarantee/Export performance bank
guarantee from his banker infavor of subsidiary/offshore buyer.
Buyer arranges advance to the exporter (foreign bank finances against the
guarantee)
All export realizations will go into foreign bank and adjusted against advance
Note: Only Foreign Banks are allowed to finance against APG/EPBG issued by Indian
banks. Ex: Alok Industries & Essar raised more than $1 bn through EPBG route for
paying off their high cost term loan debt.
APG/EPBG Procedure
