Reserve bank of India (RBI)
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Vide its notification dated January 10, 2017, RBI has made the following amendments to the in the Foreign Exchange Management (Transfer or issue of Security by a Person Resident outside India) Regulations, 2000:
- Regulation 2 – the definition of “convertible note” has been added
- Insertion of new regulation 6C regarding terms of issue of convertible notes by startup companies
For further details, please refer to the link of the above-mentioned regulations
Vide its notification dated January 10, 2017, RBI has made further amendments to the Foreign Exchange Management (Transfer or issue of Security by a Person Resident outside India) Regulations, 2000 as follows:
a. Schedule I – Annexure B - Sectoral cap on Investments by Persons Resident Outside India
The existing Paragraph F.4 shall be substituted by the following namely:-
| “F.4 | Infrastructure Company in the Securities Market | ||
| F.4.1 | Infrastructure companies in Securities Markets, namely, stock exchanges, commodity derivative exchanges, depositories and clearing corporations, in compliance with SEBI Regulations. | 49% | Automatic |
| F.4.2 | Other Conditions: | ||
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In order to align, the instructions with the objectives of FATF, on a review, it has been decided to prohibit an Indian Party from making direct investment in an overseas entity (set up or acquired abroad directly as JV/ WOS or indirectly as step down subsidiary) located in the countries identified by the FATF as “non co-operative countries and territories” as per list available on FATF website www.fatf-gafi.org or as notified by the Reserve Bank of India from time to time.
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