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<h1>Government Classifies Financial Instruments as Debt or Non-Debt Under FEMA Act 1999: Key Highlights and Categories.</h1> The Central Government, under the Foreign Exchange Management Act, 1999, has classified certain financial instruments as debt instruments, including government bonds, corporate bonds, non-equity tranches of securitisation structures, borrowings by Indian firms, and depository receipts based on debt securities. Conversely, non-debt instruments include equity investments in entities, capital participation in LLPs, investments recognized in FDI policy, units of AIFs, REITs, InVITs, mutual funds, ETFs with over 50% equity, the equity tranche of securitisation, dealings in immovable property, contributions to trusts, and depository receipts against equity instruments. Any instruments not specified are considered debt instruments.