U/s 6(7) of FEMA 1999, Central Government determines the instruments as debt instruments - S.O. 3722(E) - Foreign Exchange Management

MINISTRY OF FINANCE (Department of Economic Affairs) NOTIFICATION New Delhi, the 16th October, 2019 S.O. 3722(E).- In exercise of the powers conferred by sub-section (7) of section 6 of the Foreign Exchange Management Act, 1999 (42 of 1999) , the Central Government hereby determines the following instruments as debt instruments, namely:- (i) Government bonds; (ii) corporate bonds; (iii) all tranches of securitisation structure which are not equity tranche; (iv) borrowings by Indian firms through loans; (v) depository receipts whose underlying securities are debt securities. 2. Instruments specified below shall be considered as non-debt instruments, namely:- (i) all investments in equity in incorporated entities (public, private, listed and unlisted); (ii) capital participation in Limited Liability Partnerships (LLPs); (iii) all instruments of investment as recognised in the FDI policy as notified from time to time; (iv) investment in units of Alternative Investment Funds (AIFs) and Real Estate Investment Trust (REITs) and Infrastructure Investment Trusts (InVITs); (v) investment in units of mutual funds and Exchange-Traded Fund (ETFs) which invest more than fifty per cent in equity; (vi) the junior-most layer (i.e. equity tranche) of securitisation structure; (vii) acquisition, sale or dealing directly in immovable property; (viii) contribution to trusts; (ix) depository receipts issued against equity instruments. 3. All other instruments which are not specified in paragraphs (1) and (2) above, shall be deemed as debt instruments. [F.No. l/14/EM/2015] ANAND MOHAN BAJAJ, Jt. Secy.