Under the existing FDI policy, the following
Capital Instruments for permissible for Investing in India under FEMA
·
Equity Shares
·
Fully, Compulsorily and Mandatorily Convertible Preference Shares
·
Fully, Compulsorily and Mandatorily Convertible Debentures
·
FCCB’s
·
Subscription to American / Global Depository
Receipts of an Indian Company
Interest on Other type of Preference
Shares/Debentures, would be denominated in Rupees and hence interest thereon
has to be based on swap equivalent of LIBOR + permissible spread for
corresponding maturity External Commercial Borrowings.
The Law is based on
Consolidated FDI Policy Circular No.1 of 2012. Prepared by Mr. Arinjay Kumar Jain
