FEMA (TRANSFER OR ISSUE OF SECURITY BY A PERSON RESIDENT OUTSIDE INDIA) (FOURTH AMENDMENT) REGULATIONS, 2012 – AMENDMENT IN REGULATION 1 - 230/2012-RB - Foreign Exchange Management
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Foreign investment limits: MSEs may issue securities to non residents under Entry Routes; non MSE undertakings capped at 24% without approval. The amendment permits companies classified as Micro and Small Enterprises under the MSMED Act, 2006 (including specified export or technology park units) that are not engaged in activities listed in Annex A to issue shares or convertible debentures to persons resident outside India subject to Entry Routes, Annex B limits, and the Foreign Direct Investment Policy; it also allows industrial undertakings licensed for items reserved for MSE manufacture to issue shares to non residents up to 24% of paid up capital, with any excess requiring prior government approval.
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.
Foreign investment limits: MSEs may issue securities to non residents under Entry Routes; non MSE undertakings capped at 24% without approval.
The amendment permits companies classified as Micro and Small Enterprises under the MSMED Act, 2006 (including specified export or technology park units) that are not engaged in activities listed in Annex A to issue shares or convertible debentures to persons resident outside India subject to Entry Routes, Annex B limits, and the Foreign Direct Investment Policy; it also allows industrial undertakings licensed for items reserved for MSE manufacture to issue shares to non residents up to 24% of paid up capital, with any excess requiring prior government approval.
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