Firms get greater access to global capital markets

MONETARY POLICY MID-TERM REVIEW 2006-07/ CONVERTIBILITY ROADMAP

oject exporters/ service exporters with satisfactory track record are allowed to operate one foreign currency account with inter- project transferability of funds / machinery in any country.  For better fund management and avoid currency fluctuation, these exporters may deploy their temporary cash surpluses either in investments in short-term bank deposits or AAA- rated short-term paper overseas.

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 Open door  

Corporates can now borrow an additional $250 million of average maturity of 10 year

This is in addition to the $500 million allowed under the automatic routes

Prepayment and call and put options would not be permissible for such ECBs up to a period of 10 years