Issue of equity shares under the FDI Scheme against legitimate dues

It has been decided to permit issue of equity shares against any other funds payable by the investee company, remittance of which does not require prior permission of the Government of India or Reserve Bank of India under FEMA, 1999 , provided that:

  1. The equity shares shall be issued in accordance with the extant FDI guidelines on sectoral caps, pricing guidelines etc.
  2. The issue of equity shares shall be subject to tax laws as applicable to the funds payable and the conversion to equity should be net of applicable taxes.

To view the full notification, please follow the link.

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