The Reserve Bank of India has issued a (A.P. DIR Series) Circular No. 3 dated 14.07.2014 with respect to the regulations made there under in regard with Foreign Exchange Management (Transfer or issue of security by a person resident outside India) Regulations, 2000 in terms of which only equity shares and compulsorily convertible preference shares and debentures were recognized as Foreign Direct Investment Compliant instruments and later it was also extended to the equity shares or compulsory and mandatory convertible preference shares or debentures containing an optional clause attached to it had also been recognized as FDI compliant instruments, now the policy has been reviewed and the it has been further extended to the following instruments which is as under.
Partly paid-up equity shares and warrants issued by an Indian Company in accordance with the relevant provisions of the Companies Act, 2013 and the SEBI Guidelines, as applicable shall be eligible instruments for the purpose of FDI and foreign portfolio investment by Foreign Institutional Investors and other registered foreign portfolio investors subject to the compliance with the FDI norms.
The Circular containing the above mentioned details can also be viewed below.
