Hitesh Sanghvi discusses the safeguards that need to be followed to preserve subrogation rights of Export Credit Agencies (ECA) in External Commercial Borrowing (ECBs) transactions.

The so-called Sarfesi Act is arguably one of the most important developments in Indian banking sector reforms with respect to the non-performing secured assets.

However, certain provisions of Sarfesi seem to be a deterrent to foreign lenders providing finance to Indian borrowers, which in turn affects genuine Indian companies also from raising low-cost international finance.