Thursday, January 09, 2014

Foreign Direct Investment- Pricing Guidelines

11.   Foreign Direct Investment- Pricing Guidelines for FDI instruments with optionality clauses

RBI permits to introduce optionality clauses in the issue of in equity shares and compulsorily and mandatorily convertible preference shares/debentures to a person resident outside India under the Foreign Direct Investment (FDI) Scheme. This clause will oblige the buy-back of securities from the investor at the price prevailing/value determined at the time of exercise of the optionality subject to certain conditions. See the details here

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