Recommendations of the Committee on ECBs a positive move: Arvind Sampath, Fullerton India

In a chat with ET Now, Arvind Sampath. Head Treasury, Fullerton India Credit Company Ltd, shares his views on ECB limits. Excerpts:

ET Now: How do you look at the recommendations of the Committee on ECBs, which says that ECB limits and restrictions should go? Is this a wise move, both from the macro as well as from the macro aspect?

Arvind Sampath: It is a positive development because what was automatic and what needed approval will now merge into a single approval, a single automatic route. But the credit appraisal requirements and the disclosure requirements of overseas investors have to be carefully assessed. My sense is that it will restrict itself to the highly-rated corporates alone and the bulk of the middle rate corporates will have to go through the bank or through a bank guarantee kind of route for the ECBs. Having said that, it is a good development to have, it allows for larger ticket and a longer-tenure funding to happen.