TMI BlogForeign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Fifteenth Amendment) Regulations, 2016X X X X Extracts X X X X X X X X Extracts X X X X ..... 10th January, 2017 Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Fifteenth Amendment) Regulations, 2016 G.S.R. 16 (E). -In exercise of the powers conferred by clause (b) of sub-section (3) of Section 6 and Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999) , the Reserve Bank of India hereby makes the following amend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the option of the holder, or which is convertible into such number of equity shares of such startup company, within a period not exceeding five years from the date of issue of the convertible note, upon occurrence of specified events as per the other terms and conditions agreed to and indicated in the instrument; 3. Insertion of a new Regulation After the existing Regulation 6C, the foll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y engaged in a sector where foreign investment requires Government approval may issue convertible notes to a non-resident only with approval of the Government. Explanation: For the purpose of this regulation, the issue of shares against such convertible notes shall have to be in accordance with the Schedule 1 of the Principal Regulations. (3) A startup company issuing convertible notes to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... way of sale, convertible notes, from or to, a person resident in or outside India, provided the transfer takes place in accordance with the pricing guidelines as prescribed by RBI. Prior approval from the Government shall be obtained for such transfers in case the startup company is engaged in a sector which requires Government approval. (6) The startup company issuing convertible notes shall ..... X X X X Extracts X X X X X X X X Extracts X X X X
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