Optionality clauses in FDI instruments permit investor exit at prevailing market-linked price after applicable lock-in period. Permits inclusion of optionality clauses in equity and in compulsorily/mandatorily convertible securities issued to non residents under the FDI scheme, requiring buy back at the price prevailing at exercise so investors exit without assured returns. A minimum lock in period applies from allotment. After lock in, listed investees permit exit at recognised exchange market price; unlisted investees permit exit not exceeding a price based on Return on Equity from the latest audited balance sheet; CCDs and CCPS may be priced at an internationally accepted methodology certified by a Chartered Accountant or SEBI registered merchant banker.
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.
Optionality clauses in FDI instruments permit investor exit at prevailing market-linked price after applicable lock-in period.
Permits inclusion of optionality clauses in equity and in compulsorily/mandatorily convertible securities issued to non residents under the FDI scheme, requiring buy back at the price prevailing at exercise so investors exit without assured returns. A minimum lock in period applies from allotment. After lock in, listed investees permit exit at recognised exchange market price; unlisted investees permit exit not exceeding a price based on Return on Equity from the latest audited balance sheet; CCDs and CCPS may be priced at an internationally accepted methodology certified by a Chartered Accountant or SEBI registered merchant banker.
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