Treatment of non-mandatorily convertible instruments as debt now subjects such foreign borrowings to foreign-exchange borrowing limits. Borrowings by way of issue of preference shares and convertible debentures to persons resident outside India that are not fully and mandatorily convertible into equity within a specified time shall be considered debt and must conform to Regulation 6 of the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000, including the limits applicable to such borrowings.
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.
Treatment of non-mandatorily convertible instruments as debt now subjects such foreign borrowings to foreign-exchange borrowing limits.
Borrowings by way of issue of preference shares and convertible debentures to persons resident outside India that are not fully and mandatorily convertible into equity within a specified time shall be considered debt and must conform to Regulation 6 of the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000, including the limits applicable to such borrowings.
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