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Consider the following statements regarding External Commercial Borrowing (ECB) –
  1. ECB is a loan availed by an Indian entity from a non-resident lender.
  2. ECBs cannot be used for investment in the stock market or speculation in real estate.
  3. Public Sector Enterprises are not eligible for External commercial borrowing.
Which of the statements given above is/are correct?
  • a)
    1 and 2 only
  • b)
    2 and 3 only
  • c)
    1 and 3 only
  • d)
    Only 3
  • e)
    All of the above
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements regarding External Commercial Borrow...
External Commercial Borrowings are commercial loans raised by eligible resident entities from recognized non-resident entities.
The utilization of ECB proceeds is now permitted to satisfy general corporate purposes, working capital requirements, repayment of INR loans and for such on-lending purposes. ECBs cannot be used for investment in the stock market or speculation in real estate.
Hence, Only 1 and 2 us correct. 
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Consider the following statements regarding External Commercial Borrowing (ECB) – ECB is a loan availed by an Indian entity from a non-resident lender. ECBs cannot be used for investment in the stock market or speculation in real estate. Public Sector Enterprises are not eligible for External commercial borrowing.Which of the statements given above is/are correct?a)1 and 2 onlyb)2 and 3 onlyc)1 and 3 onlyd)Only 3e)All of the aboveCorrect answer is option 'A'. Can you explain this answer?
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