Cross-border equity issuance in Indian restructurings requires foreign investment limits and excludes prohibited investment sectors. Foreign investment in Indian corporate restructurings permits a transferee or newly formed company to issue equity instruments to existing non-resident ... Summary
Cross-border equity issuance in Indian restructurings requires foreign investment limits and excludes prohibited investment sectors.
Foreign investment in Indian corporate restructurings permits a transferee or newly formed company to issue equity instruments to existing non-resident shareholders of the transferor company after approval of the relevant scheme. The issue or transfer must comply with applicable entry routes, sectoral caps, investment limits and foreign investment conditions. Entities involved cannot operate in sectors prohibited for non-resident investment. Government approval may be obtained where caps or conditions are likely to be breached, while automatic-route mergers and acquisitions do not require such approval. Listed-company schemes must meet listing and disclosure requirements.
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