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Escrow Account

An escrow account is established by a broker under licensing laws to hold funds from a transaction on behalf of parties until the transaction is completed or terminated. Escrow generally refers to money held by a third party for transacting parties, and is best known for use in real estate transactions in the US. External commercial borrowings (ECB) include bank loans, supplier/buyer credits, and bonds from private sources like IFC used for any purpose except stock market or real estate speculation in India. ECBs come from commercial banks, buyers/suppliers, securitized instruments, export credit agencies, and private multilateral institutions. Indian firms' access to global capital markets is regulated by guidelines from the Department of Economic Affairs and Reserve Bank

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Peeyush Sharma
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248 views

Escrow Account

An escrow account is established by a broker under licensing laws to hold funds from a transaction on behalf of parties until the transaction is completed or terminated. Escrow generally refers to money held by a third party for transacting parties, and is best known for use in real estate transactions in the US. External commercial borrowings (ECB) include bank loans, supplier/buyer credits, and bonds from private sources like IFC used for any purpose except stock market or real estate speculation in India. ECBs come from commercial banks, buyers/suppliers, securitized instruments, export credit agencies, and private multilateral institutions. Indian firms' access to global capital markets is regulated by guidelines from the Department of Economic Affairs and Reserve Bank

Uploaded by

Peeyush Sharma
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Escrow Account:

 An A/c established by a broker under the provision of


licence law for the purpose of holding funds on behalf of
some other party until the consummation or termination
of a transaction.

 Escrow generally refer to money held by 3rd party on


behalf of transacting party.

 Best known in US in context of real estate.


External Commercial Borrowing
 ECB include include bank loans, suppliers' and buyers'
credits, fixed and floating rate bonds (without
convertibility) and borrowings from private sector such
as International Finance Corporation.

 In India ECB’s areUsed for any purpose (rupee-related


expenditure as well as imports) except for investment in
stock market and speculation in real estate. 
ECB’s Includes
 Commercial bank loans,
 Buyer’s credit,
 Supplier’s credit,
 Securitised instruments such as floating rate notes, fixed rate
bonds etc.,
 Credit from official export credit agencies, 
 Commercial borrowings from the private sector window of
multilateral financial institutions such as IFC, ADB, AFIC, CDC etc. 
and Investment by Foreign Institutional Investors (FIIs) in
dedicated debt funds 
 Applicants are free to raise ECB from any internationally
recognised source like banks, export credit agencies, suppliers of
equipment, foreign collaborations, foreign equity - holders,
international capital markets etc. 
Regulations

The department of Economic Affairs, Ministry of Finance,


Government of India with support of RBI, monitors and
regulates Indian firms access to global capital markets.
From time to time, they announce guidelines on policies
and procedures for ECB and Euro-issues.

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