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FEMA/ RBI - Can foreign holding company give loan to Indian subsidiary?

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(Querist)
05 July 2023 Can a foreign holding company give loan to Indian subsidiary? What will it be called under FEMA?

What if it does not want it for 3 years or more (as ECBs). Whats the other way out?

Thanks in advance.
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
05 July 2023 Under the applicable law, an Indian subsidiary can raise debt from its foreign shareholder by way of external commercial borrowings (ECBs).

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