Foreign Direct Investment: conversion of capital goods imports into equity permitted under government route; second-hand machinery excluded. The circular permits issuance of equity or preference shares under the Government route by conversion of imports of capital goods, but revises conditions to exclude second hand machineries from eligible imports; independent third party valuation, preferably from the country of import and supported by customs documentation, is required to assess the fair value. All other prior conditions remain unchanged and Authorised Dealer Category I banks must inform customers; the amendment is notified under the foreign exchange regulatory framework and does not affect other statutory permissions.
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Provisions expressly mentioned in the judgment/order text.
Foreign Direct Investment: conversion of capital goods imports into equity permitted under government route; second-hand machinery excluded.
The circular permits issuance of equity or preference shares under the Government route by conversion of imports of capital goods, but revises conditions to exclude second hand machineries from eligible imports; independent third party valuation, preferably from the country of import and supported by customs documentation, is required to assess the fair value. All other prior conditions remain unchanged and Authorised Dealer Category I banks must inform customers; the amendment is notified under the foreign exchange regulatory framework and does not affect other statutory permissions.
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