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of <h1>RBI Eases Foreign Investment Rules: Indian Firms Can Issue Equity for Fees, Royalties, and ECBs in Foreign Currency.</h1> The Reserve Bank of India has liberalized the foreign investment policy, allowing Indian companies to issue equity shares against lump-sum fees, royalties, and External Commercial Borrowings (ECBs) in convertible foreign currency due for payment or repayment. This is subject to compliance with tax liabilities and pricing guidelines from the Reserve Bank and SEBI. However, import dues classified as Trade Credit or ECBs cannot be converted into equity shares. These changes aim to facilitate foreign direct investment and are issued under the Foreign Exchange Management Act, 1999. Amendments to relevant notifications will be issued separately.
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