ECB end use

ECB cannot use for the following purpose

END-USE REQUIREMENTS

.(A) External commercial loans are to be utilised for import of capital goods and services (on FOB or CIF basis) and for project reletated expenditure in all sectors subject to following conditions :
(a) ECB raised for project-related rupee expenditure must be brought into the country immediately.
(b) ECB raised for import of capital goods and services should be utilised at the earliest and corporates should strictly comply with RBI's extant guidelines on parking ECBs outside till actual imports. RBI would be monitoring ECB proceeds parked outside.
(c) ECB raised is not permitted for investment in stock market or in real estate.

C) Under no circumstances, ECB proceeds will be utilised for -
( i) Investment in stock market; and
(ii) Speculation in real estate.

GO TO RBI SITE READ ECB  GUIDELINES

 

https://www.rbi.org.in/scriptts/BS_ViewMasCirculardetails.aspx?id=5786

Dear Valji,

Thanks for reply. But it is stil not clear whether we can repay the additional amount brought in by promoters pending disbursement from Banks.Pl. give your comment as the same is not specifically given in Non-permitted list also. Pl. advice.

ECB amt use only for the purpose buiness expansion & purchase of capital purpose only

no other purpose

you have to submit ECB return  for what purpose money is utilised

you cannot pay director loan ,please check ECB checklist

Thaks a lot Sir.....!