TMI BlogForeign Direct Investment- Pricing Guidelines for FDI instruments with optionality clausesX X X X Extracts X X X X X X X X Extracts X X X X ..... ealers is invited to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 notified vide Notification No. FEMA 20 / 2000 -RB dated May 3, 2000 as amended from time to time. In terms of the extant instructions, only equity shares or preference shares/debentures are eligible to be issued to persons resident outside India under the Fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be subject to the following conditions: (a) There is a minimum lock-in period of one year or a minimum lock-in period as prescribed under FDI Regulations, whichever is higher (e.g. defence and construction development sector where the lock-in period of three years has been prescribed). The lock-in period shall be effective from the date of allotment of such shares or convertible debentures or as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall not be treated as violation of FDI policy/FEMA Regulations. Note: For the above purpose, RoE shall mean Profit After Tax / Net Worth; Net Worth would include all free reserves and paid up capital. (iii) Investments in Compulsorily Convertible Debentures (CCDs) and Compulsorily Convertible Preference Shares (CCPS) of an investee company may be transferred at a price worked out as per an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eir constituents concerned. 6. The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law. Yours faithfully, (Rudra Narayan Kar) Chief General Manager In-Charge - Circular - Trade Notice - Public No ..... X X X X Extracts X X X X X X X X Extracts X X X X
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