Partly paid shares and warrants permitted as FDI/FPI subject to upfront payment, prescribed pricing, reporting and compliance conditions. Partly paid equity shares and warrants issued by Indian companies qualify as FDI/FPI instruments subject to FDI/FPI scheme compliance. Issuances must determine pricing and receive an upfront portion of consideration, with balance received within prescribed timelines or monitored by an appointed agency for larger issues. Warrants require an upfront price/conversion formula and conversion price not below fair value. Reporting of each remittance and issuance/transfer is required via Advance Reporting Form, FIRCs, KYC, FC GPR, FC TRS and LEC as applicable. Investee companies and investors must comply with entry routes, sectoral caps, limits and any prior approval requirements.
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.
Partly paid shares and warrants permitted as FDI/FPI subject to upfront payment, prescribed pricing, reporting and compliance conditions.
Partly paid equity shares and warrants issued by Indian companies qualify as FDI/FPI instruments subject to FDI/FPI scheme compliance. Issuances must determine pricing and receive an upfront portion of consideration, with balance received within prescribed timelines or monitored by an appointed agency for larger issues. Warrants require an upfront price/conversion formula and conversion price not below fair value. Reporting of each remittance and issuance/transfer is required via Advance Reporting Form, FIRCs, KYC, FC GPR, FC TRS and LEC as applicable. Investee companies and investors must comply with entry routes, sectoral caps, limits and any prior approval requirements.
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