Great wall of Indian regulation bars China electronics cos’ path to funding
Kolkata: Top Chinese electronic brands in India such as Oppo, Vivo, Lenovo-Motorola, Haier and Midea are funding their India businesses through borrowings from group entities, as per the latest Registrar of Companies filings. That’s due to lack of Press Note 3 (PN3) approval for equity funding and regulatory action against some of them, making accessibility to local bank loans a challenge, said people familiar with the matter.
Most of the funding is through the external commercial borrowing (ECB) route from related parties. Till PN3 regulations came into force, these entities funded Indian operations through equity capital.
