Foreign Currency Exchangeable Bonds allow overseas subscription and exchange into listed shares subject to RBI approval and end use limits. The scheme permits Indian promoter group companies to issue Foreign Currency Exchangeable Bonds to non residents, exchangeable into equity of a listed Offered Company; issuers must hold the offered shares and meet FDI and market eligibility, subscribers must comply with FDI caps and approvals, proceeds may fund overseas investments or promoter group companies (subject to ECB end use restrictions and prohibitions on Indian capital market or real estate use), pricing follows specified averaging floors, minimum five year maturity, physical share delivery on exchange, and prior RBI approval and ECB reporting are required.
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Provisions expressly mentioned in the judgment/order text.
Foreign Currency Exchangeable Bonds allow overseas subscription and exchange into listed shares subject to RBI approval and end use limits.
The scheme permits Indian promoter group companies to issue Foreign Currency Exchangeable Bonds to non residents, exchangeable into equity of a listed Offered Company; issuers must hold the offered shares and meet FDI and market eligibility, subscribers must comply with FDI caps and approvals, proceeds may fund overseas investments or promoter group companies (subject to ECB end use restrictions and prohibitions on Indian capital market or real estate use), pricing follows specified averaging floors, minimum five year maturity, physical share delivery on exchange, and prior RBI approval and ECB reporting are required.
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