FDI automatic route: equity issuances against permissible payables allowed, subject to sectoral caps, pricing rules and tax compliance. Equity shares may be issued under the FDI automatic route against any funds payable whose remittance does not require prior FEMA permission, provided issuance complies with existing sectoral caps and pricing guidelines and conversion to equity is net of applicable taxes; funds requiring Government/RBI approval, import dues deemed as ECB, trade credit or payables for second hand machinery remain excluded and subject to extant rules.
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.
FDI automatic route: equity issuances against permissible payables allowed, subject to sectoral caps, pricing rules and tax compliance.
Equity shares may be issued under the FDI automatic route against any funds payable whose remittance does not require prior FEMA permission, provided issuance complies with existing sectoral caps and pricing guidelines and conversion to equity is net of applicable taxes; funds requiring Government/RBI approval, import dues deemed as ECB, trade credit or payables for second hand machinery remain excluded and subject to extant rules.
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