Conversion requirement for debentures: only fully mandatory convertibles qualify as equity under FDI, others treated as debt. Only instruments that are fully and mandatorily convertible into equity within a specified timeframe will be treated as equity under the FDI framework; optionally or partially convertible instruments that are debt like are excluded. FIIs may continue to invest in listed non convertible debentures under existing rupee debt norms. Issuances and investments in partially/optionally convertible instruments made on or before the cutoff date may continue until maturity. Amendments to the foreign exchange regulations will be notified and authorised dealers must notify constituents.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Conversion requirement for debentures: only fully mandatory convertibles qualify as equity under FDI, others treated as debt.
Only instruments that are fully and mandatorily convertible into equity within a specified timeframe will be treated as equity under the FDI framework; optionally or partially convertible instruments that are debt like are excluded. FIIs may continue to invest in listed non convertible debentures under existing rupee debt norms. Issuances and investments in partially/optionally convertible instruments made on or before the cutoff date may continue until maturity. Amendments to the foreign exchange regulations will be notified and authorised dealers must notify constituents.
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