TMI BlogForeign Exchange Management (Nondebt Instruments) Amendment Rules, 2024X X X X Extracts X X X X X X X X Extracts X X X X ..... commencement. (1) These rules may be called the Foreign Exchange Management (Non-debt Instruments) Amendment Rules, 2024. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (hereinafter referred to as the principal rules), in rule 2 - (i) after clause (aa), the following clause shall be inserted, namely:- (aaa) International Exchange shall mean permitted stock exchange in permissible jurisdictions which are listed at Schedule XI annexed to these rules; ; (ii) for clause (ag), the following clause shall be substituted, namely:- (ag) listed Indian company means an Indian company which has any of its eq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onal Exchanges .- A public Indian company may issue equity shares or offer equity shares of existing shareholders, subject to the following conditions, namely:- (i) such issue or offer of equity shares of existing shareholders shall be permitted and such shares shall be listed on any of the specified International Exchange. (ii) such issue or offer of equity shares of existing shareholders shall be subject to prohibited activities, and sectoral caps prescribed in paragraph 2 and 3 of Schedule I to these rules; (iii) such equity shares to be issued by the public Indian company or offered by its existing shareholders on an International Exchange shall be in dematerialised form and rank pari passu with equity shares listed on a rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... public Indian company shall be eligible to issue equity shares in permissible jurisdiction, if- (a) the public Indian company, any of its promoters, promoter group or directors or selling shareholders are not debarred from accessing the capital market by the appropriate regulator; (b) none of the promoters or directors of the public Indian company is a promoter or director of any other Indian company which is debarred from accessing the capital market by the appropriate regulator; (c) the public Indian company or any of its promoters or directors is not a wilful defaulter; (d) the public Indian company is not under inspection or investigation under the provisions of the Companies Act, 2013 (18 of 2013); (e) none of its promo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inistry of Corporate Affairs from time to time. Explanation.-The restrictions mentioned at items (a) and (b) of sub-clause (i) of clauses (I) and (II) of sub-paragraph (1) of paragraph 3 and items (a) and (b) of sub-clause (ii) of clauses (I) and (II) of sub-paragraph (1) of paragraph 3 shall not apply to the persons or entities mentioned therein, who were debarred in the past by the Government or the appropriate regulator and the period of debarment is already over as on the date of listing of its equity shares on the International Exchange(s). 4. Obligations of companies .- (1) The public Indian company shall ensure compliance with extant laws relating to issuance of equity shares, including requirements prescribed in this Scheme, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . (2) In case of initial listing of equity shares by a public unlisted Indian company on the International Exchange, the price of issue or transfer of equity shares shall be determined by a book- building process as permitted by the said International Exchange and shall not be less than the fair market value under applicable rules or regulations under the Foreign Exchange Management Act, 1999(42 of 1999): Provided that subsequent issuance or transfer of shares for the purpose of listing additional shares post initial listing would be based on applicable pricing norms of the International Exchange and the permissible jurisdiction. Explanation.- For the purposes of this Scheme- (a) appropriate regulator means any financial secto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Companies Act, 2013 (18 of 2013), in case of a public issue, and a letter of offer in case of a rights issue; (h) wilful defaulter means a person who is categorised as a wilful defaulter by any bank or financial institution or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India. Annexure List of International Exchanges 1. International Financial Services Centre in India- India International Exchange, NSE International Exchange. . [F. No. 4/1/ECB/2019] SURBHI JAIN, Jt. Secy. Note : The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii), vide number S.O.3732 (E), dated the 17th October, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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