Foreign Exchange Management (Non-debt Instruments) (Amendment) Rules, 2019 - S.O. 4355 (E) - Foreign Exchange Management

Foreign investment rules amended to reshape FPI transfers, convertible pricing, sectoral conditions, and local sourcing obligations.

Amendments to the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 revise commencement and definitions, remove a repatriation restriction, and restate FPI equity transfer rules subject to Schedule and SEBI conditions while preserving Government approval where required. Convertible equity instruments must fix conversion price or formula at issuance and conversion price cannot be lower than issuance fair value. Schedule changes clarify coal mining and associated processing infrastructure, expand manufacturing and e-commerce sale permissions, require e-commerce marketplace statutory auditor reports, classify certain digital streaming activity, make specific entry routes automatic, and revise SBRT local sourcing and operational conditions. Schedule II permits FPI acquisitions and company resolutions to raise aggregate limits up to sectoral caps.