Para 3 - Eligibility Conditions and subscription of Foreign Currency Exchangeable Bonds - Issue of Foreign Currency Exchangeable Bonds Scheme, 2008

Eligibility Conditions and subscription of Foreign Currency Exchangeable Bonds.- 3. (1) The Issuing Company shall be part of the promoter group of the Offered Company and shall hold the equity share s being offered at the time of issuance of Foreign Currency Exchangeable Bond. (2) The Offered Company shall be a listed company which is engaged in a sector eligible to receive Foreign Direct Investment and eligible to issue or avail of Foreign Currency Convertible Bond or External Commercial Borrowings. (3) An Indian Company, which is not eligible to raise funds from the Indian securities market, including a company which has been restrained from accessing the securities market by the Securities and Exchange Board of India shall not be eligible to issue Foreign Currency Exchangeable Bond. (4) The subscriber to the Foreign Currency Exchangeable Bond shall comply with the Foreign Direct Investment policy and adhere to the sectoral caps at the time of issuance of Foreign Currency Exchangeable Bond. Prior approval of Foreign Investment Promotion Board, wherever required under the Foreign Direct Investment policy, should be obtained. Entities prohibited to buy, sell or deal in securities by Securities and Exchange Board of India will not be eligible to subscribe to Foreign Currency Exchangeable Bond.