Foreign investment in Indian company capital instruments governed by entry routes, payment modes and reporting obligations.

An Indian company may issue or non resident persons may purchase capital instruments subject to entry routes, sectoral caps and conditions. Listed company purchases by non residents require prior acquisition and continued holding of control under takeover rules; consideration must be paid by permitted inward remittance or specified NRE/FCNR(B)/escrow mechanisms, with issuance of instruments within sixty days or refund. Wholly owned Indian subsidiaries may issue shares to non resident parents against pre incorporation/pre operative expenses subject to FC GPR reporting and auditor certification. Issuance against swaps, imports of capital goods and pre operative expenses is allowed subject to government or Reserve Bank conditions and applicable approvals. Sale proceeds may be repatriated or credited to permitted accounts.

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