Government approval requirement for investors from land-border countries now mandatory before private placement subscription under FEMA rules. No offer or invitation for securities by private placement may be made to a body corporate incorporated in, or a national of, a country sharing a land border with India unless that entity has obtained Government approval under the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 and attached the approval to the private placement offer cum application letter. Form PAS-4 (Part B) is amended to require a declaration whether such Government approval is required and, if required, that it has been obtained and enclosed.
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Provisions expressly mentioned in the judgment/order text.
Government approval requirement for investors from land-border countries now mandatory before private placement subscription under FEMA rules.
No offer or invitation for securities by private placement may be made to a body corporate incorporated in, or a national of, a country sharing a land border with India unless that entity has obtained Government approval under the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 and attached the approval to the private placement offer cum application letter. Form PAS-4 (Part B) is amended to require a declaration whether such Government approval is required and, if required, that it has been obtained and enclosed.
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